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  #1  
Old Posted Mar 30, 2011, 7:26 PM
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2011 City Budget

Tax hike whittled to new post-amalgamation low

http://www.thespec.com/news/local/ar...algamation-low

The city’s residential tax hike has shrunk to 1 per cent – a record low since amalgamation and lower than most neighbouring cities.

“We are way, way the lowest, by far, since amalgamation,” said Rob Rossini, the city’s general manager of finance, at Monday’s budget meeting.

“I think that’s a significant, significant accomplishment by this council and staff.”

The updated figures mean council is only $6 million away from achieving their target of a zero per cent tax increase – assuming the city receives a $4 million special grant from the province to offset the high costs of social services.

The updated tax hike includes a .1 per cent drop in the city’s overall departmental budgets, a .5 per cent increase for boards and agencies and .5 per cent capital increase.

The budget figures also do not include several council-referred enhancements that will be debated in the next several weeks, which includes items such as the street tree-trimming program and expanding the city’s wireless network.

One of the biggest budget pressures currently facing council is labour costs. The collective agreements of all 25 city unions expired Dec. 31 last year and the city is currently in negotiations with all 25 of its unions.

However, Rossini says the budget includes a provision for those expenses based on an in-camera direction from council.

At the beginning of the budget process, the city was sitting at a 2.4 per cent increase. When Rossini last updated council at the beginning of March, the tax increase was whittled down to 1.6 per cent. Several measures, including a cut to the city’s cost of living adjustment expenses, allowed the city to get down to 1 per cent.

Rossini says staff have been trying to make the cuts as sustainable as possible to ensure the city’s in a good position heading into the 2012 budget.

“Are they 100 per cent iron-clad with no risks? No,” said Rossini. “But everything that we’re bringing to you is with an eye that it is sustainable.”

Council will continue to deliberate the budget throughout April and is scheduled to give its final approval April 27.

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Old Posted Mar 30, 2011, 7:35 PM
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Funny that Morelli not showing up allowed this to pass. Good for Farr for showing some fiscal discipline.


City wants police to take another shot at $130 million budget

http://www.thespec.com/news/local/ar...million-budget

City councillors are asking police to trim their budget.

In a highly unusual move, councillors voted Monday to refer the $130 million budget back to the police board in the hopes it could lower its request for a 5 per cent increase.

“It seems to be a culture that’s entrenched in the police services to come in at least double the city guidelines,” said Councillor Lloyd Ferguson, who introduced the motion.

“In my experience, we all sit here stunned by this, but we approve it – because we’re very reluctant to challenge the police services board. But I think the time has come to push back.”

Councillors have given the police two weeks to come back with a leaner budget.

“If they turn around and send it back, we’ll do what we have to do,” said Ferguson.

The police budget is a contentious and expensive issue for city council. Under the Ontario Police Services Act, council cannot see a line-by-line breakdown of the force’s budget. That means council must either approve the entire budget or reject it outright. (You can see the 2010 police budget, broken down by program on the police website)

This year, police requested a 4.97 per cent budget increase – well beyond council’s guideline to stick to the rate of inflation (roughly 2 per cent). Other than HECFI, the police were the only board or agency to ask for an increase that stretched beyond that.

Of the projected 4.97 per cent increase, 4.41 per cent is for increased salary and benefit costs. That includes more than $718,000 for six new police positions.

Ferguson’s motion to refer the budget back to the police board narrowly passed with an 8-7 vote at Monday’s budget meeting.

The vote was almost exactly divided among urban and suburban lines, with downtown Councillor Jason Farr and all of the suburban councillors voting to send the budget back.

Councillor Bernie Morelli – past chair of the police board and one of the biggest supporters of the force around the council table – was not present. A tie vote would have defeated the motion.

The debate about the police budget was heated, with some councillors arguing that the motion sends a message that council doesn’t trust Chief Glenn De Caire.

Councillor Merulla called the proposal a “sad, clownish initiative.

“(De Caire) has done his job – he said “I wouldn’t be asking for this if we didn’t need it.” Are people suggesting that he’s not being accurate? That he’s trying to deceive us?”

Terry Whitehead, who sits on the police board, said the motion was “insulting” and implied the board hadn’t done its job.

Other councillors said the issue shouldn’t be interpreted as anything other than a routine budget matter.

“All of those things really are scurrilous comments that have no place in this chamber. We should be talking about the budget,” said Councillor Brad Clark.

“In this case, the ones that are talking about the referral motion are talking about just that. The only people that are politicizing this issue are the ones who are opposing the referral.”

Police spokesperson Catherine Martin said it will be up to the police board to determine the next steps.

“Once the board is in receipt of council’s direction, they will review it and they wil respond,” she said.

Council will debate the police budget April 14 and 15.

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Old Posted Mar 31, 2011, 2:24 PM
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Agreed. Maybe Farr won't be as bad as I originally feared?
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Old Posted Apr 1, 2011, 1:59 AM
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Originally Posted by mattgrande View Post
Agreed. Maybe Farr won't be as bad as I originally feared?
Maybe not. Apart from the Ticats issue, I haven't really had any problems with him.
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Old Posted Apr 1, 2011, 2:08 AM
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I'm a little surprised the Liberals gave nothing. Maybe it was the Ticat funding or the fact the city was on track for really low increase compared to other municipalities. Or the province is completely broke.

Province leaves city with $5.1m budget gap

http://www.thespec.com/news/local/ar...-1m-budget-gap

The city will not receive any funding from the province to offset the cost of ambulances and social services.

“I would love to be able to provide Hamilton with every single request, but unfortunately, this time around we couldn’t provide it in the budget,” said Sophia Aggelonitis, revenue minister and MPP for Hamilton Mountain.

The city had requested $4 million from the province to help ease the cost of providing provincially mandated social services. The city also requested $1.1 million to cover the increased ambulance costs it will face once the McMaster emergency room closes to adults April 4.

Both requests were denied.

The province’s move means the city’s property tax increase – currently sitting at 1 per cent – could be hiked to make up for the missing cash. Since each percentage point of the residential tax increase represents about $6 million, this $5.1 gap adds almost a full percentage point to this year’s hike.

“It’s hard to comprehend. We’ve made so much progress on the budget – this year more than other years – and maybe that’s contributing to why we didn’t get any money,” said Councillor Chad Collins. “It almost unravels about a month’s worth of work in terms of trying to find efficiencies in the budget.”

It’s also being seen as a risky political move for the provincial Liberals in an election year.

“I’m shocked that the local MPPs aren’t screaming and vocalizing this travesty on behalf of the residents of the city of Hamilton,” said Councillor Sam Merulla. “They must have given up on the election. They obviously feel that these seats are not important to them – they’ve literally abandoned the city of Hamilton.”

City officials were reluctant to comment about the news and what it will mean for this year’s tax increase, saying they hadn’t received official word from the province.

“I don’t want to go there,” said Rob Rossini, the city’s general manager of finance. “I’m not making any comment until the mayor gets the formal notice from the province.”

Aggelonitis said Mayor Bob Bratina, who attended the budget announcement at Queen’s Park on Tuesday, was officially informed of the decision that same day.

However, councillors have yet to receive a formal update from city staff or the mayor’s office and weren’t aware of the news.

Bratina did not return The Spectator’s request for an interview, but in an email, he said there’s still room for the province to come through with the money.

“Our dialogue with the province regarding Hamilton’s needs has not concluded,” it read. “However, to date we have received sufficient funds to help us achieve a 1 per cent tax increase, and that could possibly be further lowered by our budget day.”

Bratina is referring to an $8.1-million grant the city received last week from the Ontario Municipal Partnership Fund. Though there was some confusion about whether that grant was the special social services grant, city staff clarified that the $8.1 million is a refund for social services costs that date back to 2009.

The city requested the $4-million social services grant because it faces higher social service costs than other cities. It will still be several years before Hamilton’s social services are completely uploaded to the province.

Since 2003, the province has provided the city with more than $120 million to offset social service costs and to help reduce the tax increase to ratepayers.

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Old Posted Apr 14, 2011, 1:29 PM
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No escape, police budget 5 per cent
http://www.thespec.com/news/local/ar...get-5-per-cent

Quote:
Hamilton police are refusing to scale back their budget.

In a letter to council, police board chair Nancy DiGregorio says the board has “unanimously” chosen to stick to its request for a 5 per cent budget increase – despite an unprecedented request from council to cut back.

Mayor Bob Bratina – who is also the vice-chair of the police board – said cutting the budget would have meant taking officers off the streets.

“The board had gone through as thorough a review of the budget as possible and there was really no wiggle room,” said Bratina, speaking on behalf of an absent DiGregorio. “We felt that we were exactly where we needed to be.”

But Lloyd Ferguson, who spearheaded the pushback against the 5 per cent increase request, said the police are the only board or agency who ignored the city’s guideline to base their increase request on the inflation rate.

...

“Therein lies the problem,” said Councillor Brad Clark. “I didn’t see the budget. I have no idea what’s the in the budget. The public has no idea what’s in the budget. We have no idea. The whole thing was in private.”

Ferguson said other departments and city agencies whose costs are largely employee-based and who protect public safety – including emergency services, public health, and hospitals – have managed to hold the line on their budgets. He also says he’s concerned that Chief Glenn De Caire told council he’ll ask for a similar-sized increase next year.
So, I'm confused about what happens now. Can council just say "Nope, you're only getting a 1% increase?" Are we forced to give them 5%?

I think if they had said, "Okay, we can scale it back to a 3% increase," they'd have no problems getting it passed, but just coming back and essentially telling the city to get fucked is going to create some friction on council.
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Old Posted Apr 14, 2011, 1:43 PM
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Quote:
Originally Posted by mattgrande View Post
No escape, police budget 5 per cent
http://www.thespec.com/news/local/ar...get-5-per-cent



So, I'm confused about what happens now. Can council just say "Nope, you're only getting a 1% increase?" Are we forced to give them 5%?

I think if they had said, "Okay, we can scale it back to a 3% increase," they'd have no problems getting it passed, but just coming back and essentially telling the city to get fucked is going to create some friction on council.

It will end up as a "turning back the clock"/"tightening all belts" debate, but it's not without precedent. NYC is regularly at loggerheads with its cops over budget issues.

From earlier this month: Mayor Bloomberg says budget cuts mean NYPD must shrink

Quote:
Shortly afterward, he said the city was on track to set a record low in murders and crime even though the city has cut the number of New York Police Department officers on the payroll by more than 5,000 since 2002.

"Just think about that. The job is not to spend as much as you can. The job is to provide the service you need and then do it as efficiently as you can," Bloomberg said.
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Old Posted Apr 14, 2011, 1:48 PM
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I believe the city cannot say no to a Police budget. They can appeal this through the Ontario Police Commission. I do not think this has ever been successful.
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Old Posted Apr 14, 2011, 2:17 PM
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Indeed, law enforcement looks like a pretty good racket.

Total Criminal Code Offences, Hamilton ON

2003: 6,640

2004: 5,764

2005: 5,625

2006: 5,602
The national crime rate reached its lowest point in over 25 years in 2006, with a decline in crime was seen right across the country.

2007: 5,511

2008: 5,322
Hamilton reported lowest homicide rates since 1981, when data first became available at the CMA level.

2009: 5,071
Crime in Canada continued to decline in 2009. Nationally, the crime rate dropped 3%, while the crime severity index declined 4%. Ontario boasted second lowest overall crime severity index, after PEI, and second lowest youth crime rates, after Quebec.
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Old Posted Apr 14, 2011, 2:25 PM
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"The 2011 Budget of $130,752,220 represents a 4.97% or $6.1 million increase over the 2010 Budget. As you are aware, the primary budget pressures for 2011 include salary and benefits enhancements related to the settlement of the collective bargaining process ($3.5 Million, or 2 84%), the OMERS 1% pension contribution rate increase ($1.2 Million, or 0.99%), and recommended staffing increases resulting from the Chief's restructuring review of the organization ($0.7 Million, or 0.57%), and mcreases in other expenditures such as fuel and insurance ($0 7 Million, or 0.57%)....

From the Board's point of view, the cost of policing is an ongoing issue, not an issue that is dealt with just once a year. Accordingly, the Board has a strong commitment to ensuring the delivery of sustainable police budgets. This commitment is demonstrated by the consistency of the Police levy as a percentage of the total City budget over the past eight years. In 2003, the Police levy was 18.54% of the total City levy while comparatively, in 2010, the Police levy represented 18.51% of the total City levy. Over the period of 2003 to 2010, the Police levy ranged between 18.43% and 18.65% of the total City levy This consistency speaks to the importance that the Board, the Chief, and staff, place on delivering fiscally responsible budgets....

As you know, the budget process is outlined in section 39 of the Police Services Act. Upon reviewing the budget estimates, the municipal council shall establish the overall budget and council is not bound to adopt the estimates submitted by the Board [section 39(3)]. However, if the Board is not satisfied that the budget established for it by council is sufficient to maintain an adequate number of police officers or other employees of the police service or to provide the police service with adequate equipment and facilities, the board may request that the Ontario Civilian Police Commission (O.C.P.C) determine the question after a hearing [section 39(5)] Theÿ Hamilton,Police Services Board is committed to the maintenance of public safety through the delivery of the highest quality of policing services while maintaining financial stability and accountability."

- From April 12, 2011 memo from Nancy DiGregorio, HPSB Chair to City Clerk Rose Caterini re: 2011 Police Budget [PDF]
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Old Posted Apr 14, 2011, 6:21 PM
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This is becoming ridiculous, especially considering the comments from the Chief to expect another 5% next year. Personally I think the Chief needs to look at using more civilian employees. If there's anything that doesn't have to be done by an officer, it shouldn't be. The cost differentials are just too high. If that means a hiring freeze so be it.
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Old Posted Apr 14, 2011, 10:45 PM
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At first blush I too was upset that the police force was unable to reduce their budget to mirror the target for all other city departments. Having thought about it, I am willing to accept the premise that cost of policing may not afford a level of flexibility that other departments may be able to afford.

Personally i am not comfortable with the lack of transparency when developing the police budget, but in all fairness the budget is seen in full and approved by its committee, a portion of which is made up by a few members of council. The budget was approved unanimously by this committee. Beyond that, for very obvious reasons one does want to maintain some confidentiality on policing plans that a budget may reveal.

I suspect some voices of concern are more about politicking than anything else.
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Last edited by markbarbera; Apr 15, 2011 at 11:35 AM. Reason: Original was incomplete and posted inadvertently
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Old Posted Apr 15, 2011, 3:24 PM
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I think one problem with the police board is that the appointees are inevitably so pro-police that no questioning is done at budget time.

New police board chair says she’s not there to make changes

http://www.thespec.com/news/crime/ar...o-make-changes

Nancy DiGregorio did not take the reins of Hamilton’s police board to make changes. But that’s because she believes in the way things are being run.

The former teacher, principal, school board trustee and volunteer became chair of the Hamilton Police Services Board on Jan. 17, more than four years after her September 2006 provincial appointment to the board.

“You don’t come in as chair to make changes, you come in to make absolutely sure you work closely with your chief, that you support your chief,” she said.

“And at the end of the day, we have the responsibility as a board … that public safety in our community is the top priority.”

For DiGregorio — who also recently became an Ontario Association of Police Services Board director — the role of the board is governance. That means overseeing policy, the budget and the chief, but not overseeing or interfering with police operations.

Last week, the board voted to stick to its request for a roughly 5 per cent budget increase, despite an unprecedented request from city council last month to cut it down.

Hamilton’s board is composed of three provincial appointees, three members of city council and one citizen appointed by city council. DiGregorio replaced Bruce Pearson, who sat as chair for one year. Prior to Pearson, Councillor Bernie Morelli spent the better part of 12 years as chair. The board is governed by the Police Services Act.

DiGregorio said upholding transparency is something important to the board. She pointed to the agendas and minutes posted on the police website, monthly public meetings and the fact that last year they began posting previously secret budgets online.

“There is no reason for any hidden agendas when you have an organization like this, which really works in the best interest of the safety of the community,” she said.

It’s the board’s job to hire the chief, the last one being Glenn De Caire, who started in 2009. He’s a leader DiGregorio believes in.

And the feeling is mutual.

“As a former educator and administrator with the school board and her work in the community, chair DiGregorio’s extensive experience and leadership with the Hamilton Police Services Board is making a positive contribution to public safety in our community,” De Caire said in an email.

The governance model adopted by most public boards, such as police, is to provide oversight, said Richard Powers, who teaches governance at the Rotman School of Management at the University of Toronto.

The chair’s role is “not to be best friends with the chief” but it is also “not to undermine the authority vested in the chief,” he said, adding that the board should hold the chief accountable, but it’s the chief’s job to direct the police.

It’s something Patricia Bradshaw, an associate professor at York University’s Schulich School of Business, calls “loyal opposition.”

There is no value in publicly shaming the leader, such as a chief of police, said Bradshaw, an expert in not-for-profit governance. If a board takes a leadership role, there’s no one to hold them accountable.

But Richard Leblanc, a York University associate professor of law, governance and ethics, said there is a tendency for heads of organizations to influence board chairs.

“The most important job of a chair is to set the agenda,” he said. And so the independence of the chair and a clear definition of the job is of utmost importance.

“To say your job is to support your chief, I’m not sure that the chair of any organization would say this,” Leblanc said.

And if DiGregorio disagrees with the chief? She said she will follow the proper channels outlined in the Police Services Act.

“We, as members of the board, have a responsibility to have a good dialogue about it … if we have a disagreement with the chief, we need to bring the dialogue to the level of the chief,” she said, quickly adding that she wouldn’t serve on a board whose leadership she disagreed with.

DiGregorio almost didn’t end up on the Hamilton police board, because she and her family almost didn’t end up in Hamilton.

She was born and raised in Uganda and came to Montreal on a scholarship to McGill University, where she studied to become a teacher, giving up a spot on Uganda’s 1968 Olympic hurdling team.

In Montreal, she met her husband Vince DiGregorio — also a teacher and a Hamiltonian. They married in Montreal, before moving back to Uganda to teach.

They might have stayed in Uganda, too, had it not been for the exodus of Asians from the East African country in 1972. They resisted leaving at first, but “things got pretty difficult” and in May of 1973 they left.

“To be honest, we both had jobs in Montreal and Hamilton was a stopover,” she said. But Vince was swayed by a music program at Bishop Ryan Secondary School.

DiGregorio, in a large part, is defined by her time in the school system — working with youth every day, taking an interest in their achievements and helping with extracurricular activities.

“We can have a great influence on young people, you can mould them.”

She worked mostly as an English teacher in the Hamilton-Wentworth Catholic District School Board, rose to vice-principal and then principal of Cathedral High School and ended her career last year as a superintendent of education.

“I did not leave because I didn’t love my job anymore, I didn’t leave because I was tired, I didn’t leave because I was upset, it was timely,” DiGregorio said, adding it’s given her more time for volunteer work.

DiGregorio has received awards for her community efforts.

Ivana Fortino met her when DiGregorio was vice-principal. Now she has “big shoes to fill” as her school board replacement.

“She gave me great advice, she told me to rely on the strengths of the team around me,” she said. And to be responsible to the students.

“She has energy … passion, a great sense of morals and values.”

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Old Posted Apr 21, 2011, 2:39 AM
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Council approves 0.8 per cent tax hike

http://www.thespec.com/news/local/ar...-cent-tax-hike

City councillors have approved the lowest tax increase since amalgamation.

Council gave its stamp of approval to a 0.8 per cent property tax increase Wednesday, which amounts to about $24 on the average bill this year.

“The work that was done to eliminate millions of dollars from the preliminary budget is phenomenal,” said Mayor Bob Bratina. “I’m quite happy with where we are today.”

But not everyone agreed.

Councillors Terry Whitehead and Brad Clark said the city should have pushed harder to achieve the goal of a zero per cent tax increase — especially since the tax rate didn’t shrink in the last 12 days of budget negotiations.

“We came so close to getting the zero. We were at 0.8, and in 12 days nothing was done. I find that incredibly disappointing,” said Clark, who is currently running for the federal Conservatives. “You get so close to the actual goal, and to stop looking is incredibly frustrating.”

The budget includes a 0.5 per cent capital levy that’s earmarked for infrastructure. It also includes millions of increases for the city’s boards and agencies, including $129.8 million for the police budget — a 5 per cent increase from last year — and $3.25 million for HECFI, the city’s entertainment agency.

Council chose to add the HECFI budget into the levy, but will hold off on passing those funds to the organization until it sees the results of a probe into the troubled agency.

When city staff first laid out last June the projected tax increase for 2011, it sat at 3.9 per cent. The closure of the adult emergency room at McMaster, transit and employee wages were identified as the major hurdles.

Over the past few months, council whittled about $15 million from the budget without affecting service levels. The final cut happened earlier this month when staff vowed to cut employee costs by $1 million by the end of the year. That shaved 0.2 per cent off the total increase.

However, Clark said the city could have found the last $5 million in cuts it would have required to get down to zero per cent.

“For all of those naysayers out there who said ‘they can’t hit zero,’ we just proved them right. Because we stopped. And we didn’t have to,” Clark said.

The budget took an unexpected hit earlier this year when the province denied the city’s request for $4 million in order to offset the high cost of social services. The province also denied another request for $1.5 million to cover the increased ambulance costs from the closure of the adult emergency room.

The city is still in negotiations with the province about the $1.5 million cost for the emergency room, which would cover the cost of an additional ambulance team. If the city doesn’t receive that money and still decided on increasing ambulance staff, that expense would be covered by the city’s tax stabilization reserve.

The budget does assume an undisclosed amount in wage increases for the city’s unionized employees. Since the city is still negotiating collective agreements with its unions, the final increase amounts will remain confidential until the city and its unions reach a deal.

Council received the latest in a series of in-camera updates on its labour negotiations at Wednesday’s budget meeting.

Each area of the city will also pay a slightly different rate thanks to changes to the city’s area rating system.

By the numbers

1.3 billion dollars: the city’s gross operating budget

0.8 per cent: this year’s tax increase

24 dollars: the increase the average household (assessed at $240,000) will pay in 2011

2 per cent: tax increase in 2010 (about $67 per home)

1.7 per cent: tax increase in 2009 (about $55 per home)

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