The Nova Scotia Minister for Municipal Affairs will not renew an order for the village of Baddeck to clean up its financial and governmental problems.
The village has been in trouble since October 2021 when its former chief manager was fired over finances.
The Minister for Town Affairs, John Lohr, issued two orders to the village’s elected commissioners to put things right or face a replacement.
Late last week, he decided that Baddeck officials had done their best.
“We have the impression that they have fulfilled the ministerial order as far as physical possibilities are concerned,” said Lohr in a telephone interview.
“We’re not happy with what happened, but we can’t go back and change it. You know, that’s a realization that we just have to move forward.”
Former head administrator Megan Cooper is accused of defrauding Baddeck of $28,500 and the village is putting together an insurance claim to recover that amount and its costs.
Cooper is expected to appear in a provincial court next month to set a trial date.
Cannot make verified statements
The Village of Baddeck is unable to provide audited financial statements for the 2019-20 and 2020-21 financial years.
Officials have looked through bank documents and computer files, but the income and expenses just don’t contain enough detail to say exactly what happened to the money.
Lohr said the commission should have monitored its former employees more closely, but he’s convinced they’re seeing that now.
The department has sent the village a letter outlining the steps they must take now, including further training with provincial staff, but Lohr said the list is not an order.
Sandy Hudson, Baddeck’s interim chief administrator, said he was relieved but not surprised by the minister’s decision.
“I don’t think he had a lot of opportunities,” Hudson said. “I mean, there’s nothing we can do to make something out of nothing.”
steps taken
The Village Commission recently increased sewage charges, hiked taxes and took steps to collect arrears and pay arrears.
It also interviewed a candidate to replace Hudson, who retired years ago as Victoria County’s chief administrative officer and has only agreed to help during the transition, and will now make an offer to that person, said hudson
Assuming the position is accepted, the candidate must resign from their current employer before the position can be filled.
Meanwhile, the village’s accounting firm will put together a “compilation agreement” that will provide the village with a “best estimate” of finances for the two missing years, Hudson said.
The accountants will also finalize the financial statements for the past two years, Hudson said. After that, the village will apply to the Nova Scotia Utility and Review Board for higher water rates to cover a growing deficit in the water account.
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