Timmins council has taken its first step in creating guidelines for how it will distribute the city's portion of the municipal accommodation tax (MAT).
There was a robust discussion at the council table last week about the creation of an advisory committee and its terms of reference. While not all councillors were in favour of the terms of reference as they were laid out, the committee was approved.
The MAT cash is collected through a four-per-cent charge on hotels, motels and other short-term accommodations. The city has been collecting it since 2019. Half is redistributed into the community for tourism activities. The city partnered with the TEDC to to be the non-profit entity to reinvest the cash. The other half of the money goes to city coffers.
Michelle Boileau, Cory Robin and Rock Whissell are the councillors behind the terms of reference. They will sit on the inaugural committee that will also include three city staff — the clerk, tourism and finance — and a member of the public.
The terms of reference for how the money will be spent are broken down into three categories — reducing the tax levy, benefitting residents and planning for the future.
To reduce the tax levy, the group proposes using half of the city's portion of the MAT money for the grants to organizations program, a community improvement program and city beautification transfers.
For benefiting residents, the terms of reference includes 25 per cent of the money be used for infrastructure and capital items for short and medium recreation and tourism priorities.
The remaining 25 per cent would be for funding equity or capital requirements for large, long-term projects.
Coun. Joe Campbell questioned creating a committee with three councillors "that will make a lot of decisions here that all council members around this table are entitled to make."
He also has concerns about the money going to items that not generating tourism — or "heads in beds" — and the wording used in the terms of reference.
“There’s a lot of loose ends in here,” he said.
Coun. Kristin Murray said she was blindsided by the item.
For her, the "top tier" make-up of the committee would include more community members. She said the final decision is up to council and with the committee she would have liked to hear more from the public and what they'd like to see in the community.
If the entire council had been part of the discussion for the terms of reference, she said they'd be in a better position.
“The optics of it was as though maybe there wasn’t interest from us, but we weren’t made privy of this and I think that should be made clear as well. It leaves a little bit of a sour taste in my mouth in terms of I just I have some preference to have community members on the committee. I think residents should be there,” she said.
Robin, who presented the item to council, said everyone will have input on what's going on. He explained the recommendation process is smaller so the group can determine what can be done. Council still has to approve decisions.
He also noted that the TEDC committee is already providing funding for events attracting tourism.
“The (city) mandate, this has nothing to do with tourism, this has to do with benefiting you and I’s community,” he said.
In Boileau's view, every application would be shared with council. She believes a committee is needed.
“It’s important to note that we’re now into our fourth year of this term and we’ve made no advancement in figuring out how we’re going to actually utilize this funding strategically and so that’s essentially what we were trying to do as our working group bringing this forward,” she said.
Mayor George Pirie also strongly agreed that a working committee is needed.
“It’s the only way we’ll get any business done in the City of Timmins regarding this issue,” he said.
Through the city's MAT money, he said building an amphitheatre or other items that would be contentious discussions give the city "an opportunity here to enhance the community and it doesn’t cost the taxpayer anything."
Money Collected So Far
From 2019-2020, the city's portion of the MAT cash was about $560,000, said CAO Dave Landers. The final figures for 2021 are not in yet.
Two MAT projects worth a total of $180,000 have been approved by the city.
There is $100,000 to update the recreation master plan and $80,000 over the next four years for the Connaught multi-purpose park.
For the portion that the TEDC is doling out, eight grants worth over $387,000 have been publicly approved.
The first round was worth a total of $291,700 and went to Rock on the River Reconnect, the Curling Canada Under 18 National Championship at the McIntyre Curling Club (that's been postponed to 2023) and the NextGen Fall Series East Championship held last year at the Hollinger Golf Club.
This week, another round of funding worth nearly $96,000 was announced.
The 2022 Timmins Bowling Invitational, Northern Ontario Darts Association (NODA) provincial championship, Timmins Pro Snowcross, Mushkegowuk Cup and Canadian Trade EX are the groups receiving cash.
Of the money that's been handed out by the TEDC committee to date, the city has received or will receive around $101,304 back through services, rentals and labour related to the events. Additional money will also be brought in through hotel rentals for the events.
