tag:blogger.com,1999:blog-3877493408875483921.post3337390306951575387..comments2024-03-28T19:43:07.897-07:00Comments on North Coast Review: City provides a brief glimpse into Legacy Inc. workings and how they make use of dividends from itUnknownnoreply@blogger.comBlogger3125tag:blogger.com,1999:blog-3877493408875483921.post-32567338584790104642022-03-25T14:33:49.466-07:002022-03-25T14:33:49.466-07:00A good question. The mayor went to full-time and s...A good question. The mayor went to full-time and senior staff received pay top-ups supposedly as retention incentives to plan for LNG and "hyper-economic growth" that did not happen. Were those costs rolled back when LNG went away? Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3877493408875483921.post-40161934161866354322022-03-25T13:28:59.355-07:002022-03-25T13:28:59.355-07:00This article captures the central problem with Leg...This article captures the central problem with Legacy. Its dividends provide benefits, there's no doubt about that. But senior staff make the decisions and "report" to the council entirely in private without opportunity for public comment. Some privacy is needed for business reasons, e.g. lease negotiations, but that does not justify a complete blackout. Is there any reason why setting and allocating dividends cannot be discussed and decided in public? <br /><br />The decision-makers "report" to the council members, but what does that mean in practice? Can the council direct the staff when they are acting as board members? The board is comprised of staff, not council members, so probably not formally. Perhaps there is a point where the staff/board members act so independently that they would be in breach of their employment contracts, but that seems unlikely. The council members are more likely rather passive, receiving information that they do not share with the public. It's a City corporation, but operates like a private corporation. <br /><br />The backgrounder says that having Legacy allows the City to focus on core services while the company focuses on land development. But the same senior staff perform both functions. Wearing two hats does not improve focus. It would be different if there were board members who were not staff, who were selected for their business knowledge, which the Inspector of Municipalities permits so long the company operates in the municipal interest.<br /><br />The backgrounder says that if lease revenue from Watson went directly to the City "the minute" those revenues ended there would be a "massive" tax increase. That comes across as hyperbole, even scaremongering. Lease revenue ending under the current arrangement would impact Legacy's ability to distribute dividends that mitigate potential tax increases. Perhaps that blow would be softened by having other revenue sources, but then under the scenario of the City receiving revenue directly it would have the same revenue sources to fall back on. Legacy seems to operate as a reserve fund to provide financial stability, but the City is likewise authorized to establish reserve funds. <br /><br />Legacy was required for the purposes of receiving revenue from Lot 444, as the backgrounder points out. The problem is that after LNG ended Legacy transitioned to serving other purposes, but that happened without meaningful public discussion and little information flow. <br /><br /> <br /><br /> Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3877493408875483921.post-667247793600080442022-03-25T12:11:42.476-07:002022-03-25T12:11:42.476-07:00The city information package doesn't mention t...The city information package doesn't mention the Legacy Fund been used for projects that are over budget to bail them out. That seems to be common practice. Rather than fiscal responsivity the mayor budgets to with the use of the fund as a backstop. <br /><br />The one drawdown that does not fit the explanation of the Legacy Fund is bonuses for staff and the mayor. I would like to know how much has been removed for bonuses and travel since the mayor took office. This information should be available without needing FOI. So much for the city's transparency.Anonymousnoreply@blogger.com