Jack R. Macdonald fund saga revived during budget talks

One can only wonder what Jack R. Macdonald would think of the squabbles underway regarding a trust fund intended for the betterment of Elora.

Back in March, council chose to spend part of the trust fund to rebuild the Victoria Street pedestrian bridge and undertake downtown improvements to Mill Street West.

The spending involved $800,000 from the fund and $200,000 from a recent land sale.

Since then, councillor Kirk McElwain requested council revisit and rescind its decision.

He argued to have those projects paid for through general tax dollars, thus allowing the trust fund money to be spent on other Elora projects.

The resolution to revisit the spending did not get two thirds support from the councillors who made the original decision – thus the resolution was lost.

On Nov. 21, McElwain brought up the issue once again – suggesting a resolution to fund the bridge and downtown improvements through tax dollars and use the $800,000 to fund a skateboard/BMX park in Elora and an ice rink in Bissell Park.

As the issue came to the forefront of discussions once more, Mayor Kelly Linton asked which projects should be cut to keep the capital budget from increasing by $800,000. Otherwise, the additional $800,000 would end up being paid for by Centre Wellington taxpayers.

The mayor sought clarity as to how the money could be pulled from the budget and dealt with separately.

Steven VanLeeuwen said if that is what is being suggested, council would need to rethink the entire budget.

“That is exactly what I am saying,” responded Linton.

He asked whether the direction would be to spend the $800,000 in one location or more than one project.

McElwain contended the trust fund money should be spent on projects that reflect the wishes of Macdonald – not infrastructure.

McElwain again stated the money should be treated separately and that Macdonald made it clear he favoured focusing on local youth and community projects.

He contended the bridge and downtown improvements were neither.

Instead, he believed the funds would be better spent on the proposed BMX park near the arena and an ice rink in Bissell Park.

“I think it is the same as if we were the executors of someone’s will … we wouldn’t spend the first half on a car and then decide later how to spend the rest of it.”

McElwain said the money was meant to be spent in a certain area and that council should honour that request.

Linton contended some of what was said by McElwain was not accurate.

He stated the motion to revisit how the money was originally allocated was lost.

Procedurally, he was not certain how to bring this proposal back to the table.

CAO Andy Goldie agreed.

As such, the funding approved in March is still on record.

He said staff have not included the remaining $1.5-million within the capital budget forecast.

Goldie added the recommendation is that money be discussed separately and that there be a public process involving the community.

“We’ve heard a number of people in the community who would like to have input.”

He stressed there a number of projects which could be considered.

McElwain contended the original $800,000 should still have been included as a separate line item within the current budget.

“If necessary, I can make a motion to recommend that since then it would not need a two-thirds majority vote.”

Councillor Stephen Kitras said the issue is controversial one.

“I have a call out to the  Ombudsman on this and would like to defer conversation on the use of the Jack R. Macdonald fund. I know it will affect our capital budget.”

Councillor Mary Lloyd asked if were possible to delineate the bridge and downtown projects by identifying how they will be paid for.

“If it is a project for 2017, it needs to be listed in the budget and made very clear how it is being paid for.”

She also had concerns the capital budget forecasts continue to include projected OLG revenues.

Lloyd said the Grand River Raceway is under certain pressures and there are no guarantees the raceway will continue in the community.

“As we move forward, it seems kind of reckless to anticipate that money will always be there – by planning for it to be there beyond 2018.”

Lloyd said “we can’t expect that $2-million to always be there … and that would have a big impact on township finances.”

She noted the OLG funding is something the township has grown to be dependant upon “… and it may not be there post-2018.”

She said it could result in a significant tax levy to resident if the municipality continued to reach its goals.”

Goldie stated staff would find a way to identify the project within the budget.

Linton said if council wants additional information for the next budget meeting, it would need to provide staff with direction.

“One of the assumptions was that there was a wish by Jack Macdonald that the money was for projects specifically related to youth. That is just not accurate.”

He cited numerous projects which have happened because of the Jack R. Macdonald fund, including:

– 1998 a picnic shelter in Bissell Park;

– 2002 repairs to the Elora clock tower;

– 2003 streetscape work in downtown Elora;

– 2003 heating system for the Elora Centre for the Arts;

– 2005 bridge pier repairs on the David Street bridge;

– 2006 completion of oak cabinetry at the hospitality centre; and

– 2007 Elora cenotaph repairs.

“There is no evidence that Jack Macdonald was unhappy with the money spent on these projects.”

Linton noted that after money was spent on the Station Square adult lifestyle community, a letter was written to then mayor Russ Spicer which stated “Elora is on the right track making the community better for everyone.”

Linton maintained there is no evidence that the money was not to be used for infrastructure.

He said the only requirement of the fund is that it be used for the betterment of Elora.

Following the Nov. 21 budget session, Centre Wellington Mayor Kelly Linton posted the following on his Facebook site.

“In 2016, Centre Wellington was the recipient of $3.5 million from our long-time generous benefactor Jack R. Macdonald. The only requirement was that council use the money to benefit the “City of Elora.” In March this year, council allocated $2 million of this gift on a legacy project to rebuild the Victoria Street pedestrian bridge and rejuvenate Mill Street. The remaining $1.5 million has been placed in a reserve account awaiting public input and Council direction.

An Elora councillor has informed council that instead of waiting for public input and council direction on the $1.5 million gift that is currently earmarked for Elora, at tomorrow’s budget meeting he will be proposing we take an additional $800,000 of Centre Wellington tax dollars to spend on two additional projects – the Elora BMX Skateboard Park and Elora Bissell Park Ice Rink.

I would like your input/feedback. I am sure that your local councillor representative would also like to hear your thoughts.”

 

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