Minister orders Baddeck commissioners to produce financials or face replacement

Nova Scotia's municipal affairs minister says RCMP are investigating Baddeck's finances, and he has ordered the village's elected commissioners to get things under control — or be replaced.

John Lohr delivered the ministerial order in person on Tuesday after the commission held a public meeting earlier this month to consider dissolving and merging with Victoria County.

Voters in Baddeck rejected the proposal, saying they wanted to see financial statements first.

The village has not submitted audited financial statements to the province for two years and has not produced a regular statement this fiscal year.

"We're very concerned about the fact that there's been two years without those audited statements and really they're fundamental to the function of the village," said Lohr. "We need to see those statements and the people of the village need to see those statements."

Baddeck's finances have been a mess for more than a year. Last year, the commission considered dissolution, with the former chair saying the village was "one disaster away" from being unable to carry on.

CAO fired recently

Then late last year, chief administrative officer Megan Cooper proposed expanding the village boundaries and suggested taking over billing and collection of taxes and sewer and water bills, which is currently done by Victoria County staff.

In October, the commission fired Cooper and brought in interim administrator Maris Freimanis. No one would say why the move was made, but Freimanis has said the finances are a mess and the village has consistently said it can't comment on personnel or legal matters.

Last month, they decided to dissolve and merge with the county, saying it was obvious village operations were not sustainable, but voters disagreed.

'A very significant event'

Lohr said RCMP are investigating, but he could not comment any further.

He said issuing a ministerial order to a municipality is not common and delivering it in person is a reflection of how serious the situation is.

"Yeah, it's a very significant event and in my understanding there's only been ... maybe two other times in the last 20 years that a ministerial order has been issued, so we take this very seriously and I know the commissioners do, as well," said Lohr.

The order requires the commission to produce audited financial statements for the last two years, draft a budget and make a plan to collect tax and utility bills, and it all has to be done by May 1, 2022.

The minister said he is prepared to vacate the commission seats and appoint new representatives, if necessary.

"I'm actually not sure if that's been done before, but certainly if the commission fails to meet the requirements of the ministerial order, that will be done, the village commissioners will be replaced and we'll move on from there," he said.

"I must say that I am hopeful they will meet all the requirements of the ministerial order. I know the villagers of Baddeck have voted to continue. I respect that and it is my hope that they are able to meet these requirements, but failing that, then this is the method by which the province will step in."

Village chair Bill Marchant said the commission has hired the accounting firm MNP of Sydney and is already working on financial statements and a budget.

Having the steps laid out in a ministerial order is serious and the commissioners know it, he said.

"I don't think we ever underestimated the seriousness of the situation we're in," Marchant said.

The commissioners are united in their resolve to comply with the order, he said.

"I don't think they have a choice. We have to work together to get this done."

Freimanis, a retired chief administrative officer with years of experience, said it is possible to get all the work done on time.

He said the commission is making plans to update residents on a regular basis and will hold an annual meeting to present financial statements in the new year.

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