Centre Wellington council has approved an emergency request of $3,000 for the Fergus Scottish Festival.
Council’s approval on June 24 followed a report from township financial manager/deputy treasurer Mark Bradey.
The funding grant comes under Section 6.0 of the Township’s Grant Application Policy.
Councillor Mary Lloyd stepped away from the council table during the discussion as she is affiliated with the festival.
Bradey’s report noted the township had previously looked at a written request from the festival. Bradey noted the festival met all the requirements for emergency and disaster relief funding of the grant application policy.
As the festival’s request letter indicates, a misinterpretation of the HST rules and poor weather during last year’s festival resulted in a significant financial deficit in 2012.
Together these situations meet the eligibility requirements for emergency funding as the circumstances were unforeseen and have created a short-term increase in expenditures and a decrease in revenues resulting in financial hardship.
Previously, the festival was considered ineligible for the grant request during the 2013 budget deliberations due to an outstanding balance owing to the township, even though the parks, recreation and culture committee supported the application.
Bradey noted the outstanding balance has subsequently been repaid to the township from a $50,000 interest-free loan approved by council on March 18, 2013.
He added there is currently no requirement in the policy to disqualify an organization for funding under Section 6.0 if it is indebted to the township.
Historically, the festival has been approved for $3,000 annually under the township’s grant application policy since 2010.
The amount currently available in the emergency and disaster relief budget is $11,688, so sufficient budgeted funds exist to meet the festival’s request, Bradey said.
Although council quickly endorsed the emergency funding, in later discussion, township CAO Andy Goldie explained the balance of the festival’s debt to the township is being paid with the proceeds of an interest-free loan to the festival by the township.
Goldie noted that because of the festival’s difficulties last year, it was still in arrears for rentals of the Sportsplex in Fergus.
When council approved the loan to the festival, those arrears were paid off.
“As such they are no longer in arrears with the township. That was the only outstanding issue,” Goldie said.
