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Chirico unhappy about "found" money split

Some “found” money will be used to pay off some of a debt owed to the city by the YMCA, and deputy mayor Peter Chirico isn’t too happy about that.
Some “found” money will be used to pay off some of a debt owed to the city by the YMCA, and deputy mayor Peter Chirico isn’t too happy about that.

The city recently received a $215,000 GST rebate on construction costs related to the Chippewa Street aquatic centre.

Recommendation was amended
City staff recommended 61 per cent of that refund, or $131,000, go back into an aquatic centre reserve fund, with the other 39 per cent, or $84,000 going back to the Y to be applied to the $191,000 it owes the city in relation to the aquatic centre.

The percentage split is based on city contribution to the project and the fundraising done by the Y for its share.

At last week’s committee meeting of council, though, the recommendation was amended by Chirico, the General Government Committee chairman, so that the entire rebate would go into the reserve fund.

The money would then be available for things like mechanical and structural repairs to the facility, Chirico said.

Run into problems
Things changed at Monday night’s council meeting when Coun. Mac Bain introduced another amendment to bring the split back to the suggested 61-31.

“If we had paid 100 per cent of the aquatic centre we should keep this found money in reserves, but the community contributed 39 percent of the cost,” Bain said.

The YMCA had come to council asking for more money from reserves to finish the aquatic centre, guaranteeing to pay it back through additional fundraising, resulting in the $191,000 still owing.

Bain said the Y has run into problems coming up with that money due to three main reasons: a lower than expected contribution from Human Resources Development Canada, lower than expected Nevada ticket revenues, and outstanding pledges “that have not or will not be collected.”

Fundamental principle
Coun. George Maroosis favours the split.

“Say you and I are partners and we buy some stuff and we get a GST rebate. Obviously you should get your share, that’s how it works,” Maroosis said.

But Chirico said the city should receive the entire amount because of a “fundamental” principle.

“We had an agreement. they were going to raise X amount of dollars and they were about $200 thousand short,” Chirico said.

“This is found money. This money isn’t going to fall into a black hole somewhere it’s being put aside for the future for that same facility. It’s our capital, our facility.”

Get in trouble
Chirico said by approving the GST split, council was in essence letting the Y “off the hook” for some of its fundraising commitment.

“I don’t agree with that. This is how we get ourselves in trouble. This is exactly how we get in trouble.”

Absolutely ridiculous
Chirico was reluctant to compare the situation to that of the North Bay-Mattawa Conservation Authority, which came to the city looking for money for its interpretive centre.

Chirico said he’d warned council at the time to make sure “every dollar” of fundraising was in place before making any contributions, adding he and three other councillors voted against helping the conservation authority with the interpretive centre.

“Every member around this table has been critical of the conservation authority and they’re doing the exact same thing and it’s absolutely ridiculous,” Chirico said.

“Should you be fiscally responsible when you want to be? No, be fiscally responsible all the time and that’s what the motion was for, and that’s why those funds should have been put into reserve and not given back and let the fundraising off the hook.”