Puslinch satellite station finances to be reviewed by accountants

It’s still going to be some time before council renders a decision on a proposed satellite fire hall for Puslinch.

On June 18, councillors here agreed with a recommendation to have its accountants review the proposed financial figures for the project.

In late April, deputy fire chief Steve Goode proposed a satellite station in the western portion of the municipality.

In previous discussions Goode said, “It is a good idea to put a station out by the lake – the west end of the township.”

That station would operate in conjunction with the Aberfoyle station – which is situated next to the township office. Preliminary costs for that satellite are just over $950,000.

Previously, councillors had asked that the financial figures be reviewed by staff. They worked on the estimates with the deputy chief. That work reduced the numbers somewhat, but still appeared to generate a long term savings for the municipality.

Goode said part of the changes revised included population growth figures.

Fielding noted there was a recommendation by the fire committee the statistics be sent to RLB Charted Accountants for more scrutiny. That information would then be discussed at the next fire committee meeting.

Mayor Dennis Lever was pleased to see that the information is being sent for review. “I thought the estimate for the growth was a bit generous as originally proposed.”

Lever added since that time, recent census data for Puslinch became available, and in a five year period, Puslinch had grown five per cent.

“I agree we send this out to the professionals to get their take on this. Then we can discuss it more,” he said.

Goode said earlier in the day he fielded an inquiry for an insurance broker regarding a residence near Concession 2 and Sideroad 10. The person asked if the fire department has rural water accreditation.

Puslinch does, but Cambridge, which covers part of the township in the western section, does not.

Goode was asked if the property is within an eight kilometre radius of the station with accreditation. He was told the difference might be $2,000  on the premium.

“I’m just passing the information forward to council.”

After a check, the distance was 9.8km, and the distance from Cambridge is 8.6km. “Either way, there would not have been a benefit [for the resident].”

Lever said his personal experience is in the renewal of his insurance. That question was just one of 50. However for him, it amounted only to a $200 difference on a premium of $1000. “So it was about 20 per cent,” he said.

Goode, too, agreed he had a problem believing rural water accreditation would make a $2,000 difference to an insurance premium. “It was not a commercial or industrial building by any means.”

Lever suggested to staff that RLB be asked about the potential impacts to insurance premiums – “if they have access to that kind of information.”

He said there is some uncertainty created by insurance companies that do offer different premiums because of the accreditation, and others, who do not. He cited a recent conference he was at where he was told both about positives of rural water accreditation and of having a full-time fire department. “They are both advantageous, but the rural water accreditation was of a bigger insurance benefit – if your insurance company accepted it.”

Goode asked if there is a way to determine what savings there would be.

Council agreed the financial proposal should be verified by the township’s chartered accountant, as recommended by the fire committee.

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