CENTRE WELLINGTON – A report to Centre Wellington council estimates a decrease of over $1 million in OLG payments in 2020 compared to last year.
The OLG makes quarterly payments to municipalities that host their gaming sites such as Elements Casino Grand River in Elora.
This year’s projected payments total about $1.6 million compared to $2.7 million received last year.
Elora’s casino has been closed since mid-March, therefore there will be no second-quarter payment quarter. The third-quarter payment is projected to be 50 per cent lower than 2019.
Centre Wellington’s policy is 88 per cent, or a maximum of $2.2 million, of the funds collected go into reserves to fund the next year’s capital projects. Five per cent goes towards arts, culture and heritage with the remaining funds towards economic development.
The report says that council has directed this policy to be reviewed at Monday’s 2021 pre-budget meeting.
The $2.2 million allocated for 2020 capital projects represents about 11 per cent of the $18.5 million total of this year’s capital budget.
CAO Andy Goldie said the town is fortunate that it doesn’t spend these funds until after it is all collected.
“We do not allocate or put it towards projects until we have all the money in the bank,” Goldie said. “We will know that number in advance and not over-commit to projects to work on and then have to cancel them.”
Goldie explained that this means the tax-base will not be impacted because they won’t have to allocate any tax funds to complete projects.
The report to council says the significant decline in OLG funding translates into reduced capital funding available. Centre Wellington council is having a committee of the whole on Monday to have an early discussion on the 2021 budget which will include how to proceed with this
“Council and staff will be working through the budget but a final decision won’t be made on that until December when we look at approving the budget,” Goldie said.
