Adjala-Tosorontio Mayor Mary Small Brett is denying accusations made by Coun. Floyd Pinto and members of the public claiming the township is being investigated by the OPP and the Canada Revenue Agency.
Small Brett sent a letter to Simcoe.com to address “rumours out in the public” she has heard over the past year and more recently in regards to “alleged illegal activity” involving the township and its staff.
“After recent conversations with the OPP and staff I can confirm that, to my knowledge, there are NO ongoing OPP investigations against the township, or any of its staff members,” she wrote. “In addition, the township is not being investigated by the Canada Revenue Agency (CRA). The residents have every right to be informed with facts.”
The mayor’s comments come after Coun. Pinto publicly stated that council allegedly discussed income tax evasion in regards to the CAO’s mileage payments during an in-camera meeting held in February 2017.
which was held to vote on the recommendations of an integrity commissioner’s report that found Pinto and Coun. Meadows broke council’s code of conduct on several occasions.
Pinto said he contacted the OPP early last year to investigate concerns about “mileage payments made to senior staff without proper complete documentation.”
When Pinto last met with the OPP he was informed they were forwarding the matter to the CRA.
Pinto said the OPP also recommended council pass a motion to contact the CRA to conduct a forensic audit, but the majority of council voted against it when he and Meadows attempted to do so in April of last year.
It was at this same meeting in April 2017 when deputy mayor Doug Little brought forward a motion for the councillors to be investigated for breaking council’s code of conduct.
Nottawasaga OPP Staff Sgt. Brian Humber confirmed there is no current investigation and said the detachment received a number of complaints since 2014.
He said the latest one was in regards to the tax issue and that it was referred to the CRA.
A CRA spokesperson could not confirm or deny whether an investigation is taking place and said the agency could not legally discuss the details of any specific cases.
CAO Eric Wargel’s mileage payments became a subject of controversy in 2016 after Pinto found out he was receiving payments ranging from $500 to $700 per month without providing detailed invoices.
Following the in-camera meeting held in February 2017, council changed Wargel’s compensation to a monthly vehicle allowance of $600 per month.
Prior to this change, Wargel’s mileage payments never appeared as part of his benefits in the annual Sunshine List since becoming CAO in 2010.
Deputy Mayor Doug Little told simcoe.com Wargel’s mileage payments adhered to the rules set out by the CRA, but only became taxable after it was changed to the monthly allowance.
When asked why the change was made, Little said it was for transparency and to “make it easier for budgeting.”
The Sunshine List for 2017 shows Wargel made $136,280.93, plus $8,438.70 in benefits.
However, the township’s treasurer said his salary and benefits were accidentally lumped together, which means his salary was roughly $127,800.
She said the benefit payments include about $7,200 in his annual vehicle allowance, with the remainder being life insurance payments.
Wargel previously told simcoe.com “there is no tax evasion going on” and that council has “adopted new policies to create greater clarity and better direction with regards to all staff mileage payments, including the requirement for more information on mileage claim forms.”
Pinto said he continues to have discussions with the CRA on this matter.
In the past the mayor has accused Pinto and Meadows of proving misinformation to residents on issues like the mileage payments and post-retirement benefits for staff.
The post-retirement benefits were cancelled in early 2016 after the councillors starting raising concerns.
“These changes itself indicate that Councillors Pinto and Meadows identified problems and were making changes that were in the best interest of the Township,” Pinto said.
In the fall of 2015, Pinto asked the OPP to investigate the decision made by a previous council to extend benefits for municipal employees to age 80, which is not typical for most municipalities.
When the report was completed the following year, no criminal wrongdoing was found, but the OPP identified “deficiencies in corporate policies and procedures.”
Last July, Pinto shared documents he obtained through a freedom of information in an attempt to gain more information on 13 remuneration enhancements OPP investigators identified as being approved without following the township’s bylaw.
The OPP said the documents “afforded some evidence that individual members of council were aware of some of the enhancements” but they had no information showing council provided direction for the remuneration.
After the report was released, Small Brett said to the best of her knowledge the enhancements were negotiated between staff and the former mayor before coming to council, verbally or otherwise, before going through the budget process.
Council accepted the OPP’s recommendation to review policies and procedures regarding remuneration and put it into practice, including the implementation of an audit committee.
