Centre Wellington councillors are taking another look at how the township spends OLG funds.
As part of a brainstorming session on July 12, councillors asked staff to look into the financial impact of diverting $750,000 per year from capital projects such as roads and bridges to additional support for economic development, heritage, culture and Sports.
Earlier in the meeting councillor Kirk McElwain suggested township revenue from the OLG (Ontario Lottery and Gaming Corporation) slots might be better directed to bridge projects than as a general source of revenue for capital projects.
“That’s where we should have been all along – using OLG funds for bridges and other special projects,” McElwain said. “We’ve painted ourselves in a corner with the OLG funds because if we lose it, it’s now part of standard income.”
He said it is no longer used for special projects, it is just used as a $2-million income source. He added he considers bridge replacements in the category of special projects.
Mayor Kelly Linton responded, “If you think the OLG funding is that tenuous, is that the best way to be funding bridge replacements if the funds could disappear tomorrow? It doesn’t seem responsible to me.”
The mayor clarified that OLG funds are used on capital costs – nothing goes into operating.
McElwain contended there are aspects of the township operations which are horribly underfunded. He said, “Economic development should be our flagship … but it’s nothing.”
Councillor Stephen Kitras said discussion on the reallocation of OLG funds resulted from seeing the underfunding of community and cultural events.
Kitras said his proposal might be considered a bit radical, “But I feel very strongly that the OLG funds need to be reorganized to some of the important strategies for the growth of this community.”
Kitras proposed Centre Wellington spend $500,000 each year for the creation of an economic development corporation from the OLG funding.
“If we have an economic development corporation, I feel we will hit the targets for our growth strategy plan,” said Kitras.
He added the township is slotted to increase the number of local jobs “but it’s just a number pulled out of the air.”
Kitras asked to allocate $250,000 for a cultural reserve fund – of which 10% goes to heritage, 30% to the arts/culture, 30% to Sports and 20% to community groups.
He clarified this would be in addition to the funding the township already provides to these areas.
The township provides about $52,000 each year in community grants.
“The reason I feel heritage should be included is that I feel the Edwards building (log cabin) which we allowed to be demolished may have been saved,” said Kitras.
“I feel that if we had funds in reserve, maybe something could have been done differently.”
He said there are other buildings the township has allowed to be demolished, including the Wilson farmhouse, after which Wilson’s Flats were named.
“We could have intervened if we had a fund.”
As to the arts, Kitras said, “We don’t fund it very much.” He said there are more and more groups who end up with smaller pieces of the community grants.
He considered the additional funding “a visionary commitment.”
He said both heritage and the arts are items the public does not seem readily willing to spend on, “So I feel while we still have the OLG funding, we should be putting some money into reserves for this.”
Kitras also advocated allocating 2% of the OLG funds into local education and counselling help for gambling addiction.
“I feel very, very strongly that if we take the money, we should be doing something to help the people in trouble,” Kitras said. “It is our responsibility.”
While he understood social programs are a provincial responsibility, “we could use the funds creatively within our own community.”
Linton said the township receives about $2-million annually in OLG revenue, with the funds directed into capital works.
He said there is a report indicating what projects the money is spent on.
The mayor said the proposal would pull roughly $750,000 from the OLG funds that would otherwise fund capital projects – “That means something else may not get done.”
Linton asked why the OLG funds should be treated differently.
Kitras contended the items he requested additional money for are underfunded.
“They are also things taxpayers do not appreciate or want to spend tax dollars on, so I feel the OLG money is ideal for that reallocation.”
As to the argument the move would take away from other projects, Kitras said the township has a 2% capital levy, so, “We are allocating for capital projects.”
Kitras said, “We know we are going to grow. We need to be prepared.”
Councillor Mary Lloyd asked for clarification as to whether Kitras wanted to have these allocations each year.
Kitras said, “I believe that while the OLG funds exist, we should spend $500,000 each year. To reach the targets we need in economic development we are going to have to find that money anyway.”
He said this means having a plan and the funds to make it happen.
Councillor Fred Morris said originally the thought was to use the OLG funds for special projects.
“One thing council did not want is to create a township dependency on these funds.”
He said if the revenues dropped the municipality would be left in a cash crunch.
“Reallocation should be for special projects only. We are dangerously close to being dependent on the funds for capital projects.”
Morris liked the idea of more focus on economic development.
“The perception is that there is a bottomless pot,” he said. “If the slot money disappears, what happens to the program?”
He said he wanted to ensure the municipality does not become dependant on OLG funds.
Council eventually directed staff to look into the financial impact of diverting OLG funds from capital projects to support economic development, heritage, culture and Sports.
