January 13, 2015
1420
By a recorded vote of 5-3, Kincardine council has terminated its agreement with the Penetangore Regional Economic Development Corporation (PREDC) which was providing economic development services for the municipality.
At the budget meeting Monday night (Jan. 12) in Underwood, council discussed the $142,000 set aside for PREDC this year, and decided the municipality will no longer fund the organization, but will look at other options for economic development.
Earlier in the meeting, deputy mayor Jacqueline Faubert requested a deferral of the debate on this issue, allowing PREDC an opportunity to present its 2015 budget which was being approved by the board that night (Jan. 12).
"I think it was imprudent of PREDC not to give us figures for our budget meeting," said councillor Maureen Couture. "I do not support deferring this discussion. Let's make a decision on this and move on."
"I agree with Maureen (Couture)," said councillor Laura Haight. "Their funding requirement should be here now. Do they need funding or no funding? That should be discussed during the budget talks."
Councillor Andrew White noted that Huron-Kinloss council told Kincardine council last year that the township did not put funds toward the physician recruitment program because the figures were not available during their budget discussions. "We're doing the budget, so PREDC should have the numbers to us to discuss."
The motion to defer was defeated.
Mayor Anne Eadie reminded council that PREDC operates on a different fiscal year than the municipality which operates on the calendar year. So, the funding from 2014 continues through to the end of June, 2015.
Treasurer Roxana Baumann noted that the second payment to PREDC was made in December and provides funding to the end of June this year.
Eadie also pointed out that the municipality did contract with PREDC to the end of 2016.
"I do not support spending this $140,000 on PREDC," said Haight. "I understand why council of the day thought this model would work. But PREDC was supposed to seek out private fiscal partnerships and secure operating grants and get funding through the federal gas tax. Now, it's 100-per-cent funded by the municipality on a series of deliverables. I don't see the merit in it."
"It's over-priced for what we're getting," said councillor Gordon Campbell.
"We do have a contract with them for three years and that ends next year," said councillor Linda McKee. "We need to follow through with that."
Chief administrative officer Murray Clarke said the contract runs to the end of 2016 but there is no specific dollar amount included in that contract. That was to be determined each year by council during budget talks.
"Someone needs to do economic development," said Faubert. "There are opportunities that the municipality can't act on as quickly or as proactively. My faith is in the model. It's inexpensive when we have that amount of expertise on the board, helping promote economic development in Kincardine and the surrounding area."
She again asked that council give PREDC a chance to prove itself, and suggested there may be a lack of co-operation between PREDC and the municipality. "If we could just defer this until our next budget meeting. They have a business plan for 2015, I've seen it."
"The model is perfect," said White, "but what they need to bring to the table are some real hard facts."
Couture said she was originally excited by the idea of an arm's length group taking on economic development for the area, but was quickly disillusioned. She said a crucial part of the deliverables was the development of an economic development plan which was never done.
"I support business people talking to business people," said Eadie. "We have supported PREDC well financially. I suggest we continue to support it but at a lesser amount. It's important for attracting business and retaining business. We need money in the budget for economic development anyway."
PREDC HAD FOUR YEARS TO PROVE ITSELF
"They had four years to prove themselves," said Couture, "and they haven't delivered. They have helped out new businesses coming to the municipality, but no new businesses have come to the area because of PREDC."
Couture put forward a motion that Kincardine provide no funding for PREDC in 2015 which means a savings of $142,000 or 1.5 per cent on the tax rate; that Kincardine terminate its agreement with PREDC with 60 days' notice; and that during that 60 days, the CAO put together a report, outlining options for providing economic development in the Municipality of Kincardine.
Clarke told council his only concern is dispensing with PREDC before having something else in place for economic development.
"We have 60 days to come up with something," said Couture.
"We can look at alternatives," said Eadie. "But we should defer the staff report. Our CAO has a heavy workload already, doing his job and public works. We're not going to save money if we have to hire another person (for economic development). I would prefer this was not approved as matters arising when we return to council."
"Can the CAO provide a report within the 60 days?" asked Couture.
"We can do it within that timeline," said Clarke.
In a 5-3 recorded vote, committee-of-the-whole approved the termination of the agreement with PREDC and the funding of PREDC. In favour were councillors Gordon Campbell, Maureen Couture, Laura Haight, Randy Roppel and Andrew White, while against were councillor Linda McKee, deputy mayor Jacqueline Faubert and mayor Anne Eadie. Councillor Mike Leggett was absent.
In council session, Faubert noted that council is terminating the PREDC contract but PREDC is still in possession of funds to the end of June. "How does that work?"
"Our fiscal year is the calendar year," said Clarke, "and PREDC has been paid out to June. We will issue a notice, and they will have the remaining funds to work with until the end of their fiscal year.
In another 5-3 recorded vote, council approved the termination of the PREDC agreement and the funding of PREDC.
Written ByLiz Dadson is the founder and editor of the Kincardine Record and has been in the news business since 1986.
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