CENTRE WELLINGTON – The Township of Centre Wellington has approved allocating last year’s operating surplus into a new reserve fund to offset any tax-supported shortfalls from the pandemic.
At Monday afternoon’s remote council meeting, a close 4-3 vote approved moving almost $800,000 into a reserve fund.
A report by CAO Andy Goldie and director of corporate services/treasurer Dan Wilson showed a range of $690,000 to $820,000 in lost revenue, mostly in recreation, aquatics and culture programming. Expense savings from 91 employees placed on emergency leave, delaying new hires and general operations ranged from $520,000 to $690,000.
The total net impact when factoring in revenue lost and expenses saved ranged from $0 to $300,000. These estimates were assuming a re-opening of township services on July 3.
Councillor Bob Foster said to council he was concerned about longer term impacts and strongly felt looking to July 3 was not looking far enough.
“It’s something we’re monitoring on a daily and weekly basis but also the impacts of COVID-19 are changing on a daily and weekly basis as well,” Wilson said to council. “If July 3 ends up not working out from a start perspective we can be back to council with more numbers in the future.”
Councillor Kirk McElwain had issues with the wording of the recommendation. He put forward a motion to defer to staff until a committee of the whole can be held and to understand the exact impacts better.
“I don’t mind putting that money into a reserve but I don't think it should be identified as a tax-supported operating shortfall for 2020,” McElwain said to council. “We may need to use some of it for 2021 instead.”
This motion was defeated after concerns were raised about this motion affecting the 2020 tax rate bylaw which is intended to be passed at the next council meeting.
“I want to see the tax bylaw go out so that we can collect taxes,” said councillor Neil Dunsmore.
Foster maintained his position that the report doesn’t accurately reflect what the true impact will be.
“This report and this presentation in my view just shows how unprepared we are to manage our money in this pandemic,” Foster said to council. “We’ve only looked as far as the third of July. That tells me we’re unprepared financially and that’s a recipe for financial problems and potentially bankruptcy.”
Dunsmore took issue with this statement from Foster describing it as “fear mongering.”
“This township has strong reserves, they’ve been good financial stewards of taxpayer’s money for years now,” Dunsmore said. “We are not anywhere near bankruptcy and to put that out there in a public meeting right now to stir fear in the middle of a crisis is incompetent.”
Councillors Steven VanLeeuwen and Ian MacRae were supportive and both expressed that it makes sound business sense.
Mayor Kelly Linton joined VanLeeuwen, MacRae and Dunsmore by voting in favour of the reserve fund. Linton wanted to make clear that only the funds that are needed will be used.
“If this reserve isn’t required, it will be parked and be able to be used on other operations,” Linton said.
