This year Guelph-Eramosa Township plans to draw $329,500 from the Rockwood Hydro Fund, depleting it to $619,573.
The fund was created in 2002 with a total of about $1.7 million from the sale of Guelph/Eramosa Hydro Utility.
“The use of the funds shall be limited to the geographic boundaries of Rockwood … and to be used for the purposes for which the municipality has the authority to expend funds in that geographic area,” states the Nov. 6, 2000 bylaw that created the fund.
“Really it’s improvements for the community,” Mayor Chris White said, “Mainly the idea is if we feel that it directly benefits the people in Rockwood and they’ve got this Hydro Fund intended for that purpose that’s how that decision is made.”
Earlier this year council went “outside the box”, White said, and announced that $70,000 would be taken from the Hydro Fund to support the Concerned Residents Coalition (CRC) at the Ontario Municipal Board (OMB) hearing regarding the proposed quarry by James Dick Construction Limited on the Sixth Line of Guelph-Eramosa Township.
“I can understand that this is controversial but … the decision was that the people … potentially impacted by the quarry are the folks in Rockwood,” White said. “Now I realize the quarry’s on the Sixth Line and I realize those people are … beside it … but the concerns … for some folks (is) the edge of the quarry where they’ll be blasting is 1,000 feet from their backyard or their back door … and those are back doors in Rockwood.”
He added, “I understand you may look at that and say you know it’s not specifically within that (Rockwood) border but in fact it is because the impacts are within that border. If there’s trucks they’re coming through town, if there’s blasting it can be felt in town, if there’s water issues that could affect the water in town.”
The township chose not to appear as a party at the OMB hearing, but White said the CRC donation gives citizens of Rockwood a voice at the proceedings.
“The idea is that this stuff is to be used to enhance Rockwood,” White said.
“Well as I’ve said before if there’s a potential threat that we can remove, that’s as good as an enhancement because if there are consequences from it then there are costs and there are impacts.”
When the $70,000 CRC donation was first announced the Advertiser reported the Rockwood Hydro Fund had a balance of $1.3 million, a figure provided by White.
The actual current balance is $619,573. The difference – $675,983 – was taken from the fund in recent years by the township in the form of self-financing loans and will eventually be paid back to the fund, according to a breakdown provided by Guelph-Eramosa finance director Linda Cheyne.
The township borrows from the Hydro Fund when money is needed for a Rockwood project that will be used by the entire township like the Rockmosa Park expansion, White explained.
“They’re decisions you make as you go and in some cases you say ‘well that seems reasonable that the Hydro Fund should just pick up that tab, that’s what it’s for’ and in other cases you say ‘well it’s a good financial thing to borrow against it for kind of a Rockwood community thing,’” White said. “[The loans are] for stuff that’s eventually utilized by the whole community.”
White also explained that borrowing from the Hydro Fund helps preserve the fund balance.
“As opposed to us going out and borrowing from a bank or borrowing from somewhere else where they get the interest, by borrowing from the fund we’re actually helping to preserve it because not only do we get the capital back, we gain the interest,” he said.
2016
This year the Rockwood Hydro fund was used for:
– Rockwood banners ($4,500);
– Rockwood sidewalk upgrades near the new Sacred Heart Catholic School ($230,000); and
– CRC donation for OMB hearing ($70,000).
The township also borrowed $25,000 from the fund for the Rockwood Cemetery expansion and equipment.
2015
In 2015 a total of $50,659 was taken from the Rockwood Hydro Fund for:
– Rockwood Active 55 Enabling Garden ($25,000); and
– Rockwood sidewalk upgrades throughout the town ($9,280).
The township also took out a $16,379 self-financing loan for the Rockwood Cemetery expansion.
2014
A total of $824,786 was taken from the Hydro Fund in 2014, however the majority was self-financing loans with only a $17,323 withdrawal (for Rockwood parking lot lights) that will not be repaid. This municipal parking lot is beside the Whistle Stop and there was concern for public safety at night before the lights were installed.
The township borrowed $385,844 from the fund for the Rockwood library expansion. The loan has been set up as a 15-year loan with principal and interest payable annually at 2.2%. Guelph-Eramosa owns the building and Wellington County leases the library space.
The township also borrowed $386,620 for an installment for the land acquisition for the Rockmosa Park expansion.
In addition, the township borrowed $35,000 for drainage of the Rockwood Cemetery expansion.
2013
In 2013 the township used $91,253 from the Rockwood Hydro Fund for:
– cenotaph upgrades ($3,581);
– strategic Molok installations (garbage bins for dog waste), along dog walking routes in Rockwood ($3,499); and
– playground equipment in Rockwood ($48,686).
The township took out another self-financing cemetery expansion development loan in 2013 for $35,487.
2012
The township used $59,953 from the fund in 2012 for:
– a council donation to the East Wellington Community Services food bank in Rockwood ($10,000); and
– cenotaph upgrades ($29,953).
The township also took out another self-financing loan of $20,000 for the land acquisition for Rockmosa Park.
2011
In 2011 the township used $187,846 of the fund for:
– Rockwood sidewalk upgrades ($100,544);
– legal and audit fees for the dissolution of 1404999 Ontario Ltd. ($699);
– council donation to East Wellington Community Services food bank in Rockwood ($10,000);
– Rockmosa splash pad and water protection upgrades ($25,000);
– land rental for Rockwood signage ($200); and a
– bus funding partnership with the Upper Grand District School Board ($15,000).
In 2011 the township used $28,637 for the land acquisition for the Rockmosa Park expansion. Over the five years from 2011 to 2016 the township has borrowed $435,257 from the Rockwood Hydro Fund for the Rockmosa Park expansion land acquisition. About $256,380 has already been repaid and the remaining balance ($178,877) will be repaid from the sale of surplus properties, Cheyne explained.
The township also used $7,766 for the Rockwood Cemetery expansion 2011. From 2011 to 2016 the township used a total of $119,632 from the Hydro Fund for the expansion of the Rockwood Cemetery. The funds will be paid back through future plot sales, Cheyne’s document showed.
When the Rockwood Hydro Fund was originally created White said the idea was to maintain the core of the fund and use the interest on Rockwood projects, however, interest rates have decreased making that a more difficult feat.
“Sometimes things need to be done and we feel it’s time to do them, like a sidewalk, that’s an opportunity when the road is up to do it so you can’t wait until all the interest and stuff necessarily get in there,” White said. “So we recognize that principle so we’re trying to preserve as much of the core of that as we can.”
