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www.durhamregion.com THE CANADIAN STATESMAN, FEBRUARY 5,2003 PAGE 3 Making sense of dollars and cents Format for dishing out $76,000 raises concerns WENDY GALLAGHER Special to The Statesman CLARINGTON - In what could best be described as a game of 'Chance', Clarington councillors doled out $76,000 in grants to local groups Monday. Monday. Close to 50 groups, from bands to the food bank, wrote council asking for financial financial help. Mayor John Mutton began doing some quick math calculations at the general general purpose and administration committee committee meeting. As the list of requests dealt with was drawing to an end, the allotted money council had set aside was dwin- Clarington gives blessing to for-profit utility ownership WENDY GALLAGHER Special to The Statesman CLARINGTON - Local residents can now say they are part owner in a for- profit business. Last week, council agreed its share of the electricity utility Veridian Connections, will operate as a for-profit venture. When the provincial government capped electricity rates with Bill 210, the Electricity Pricing Conservation and Supply Act, it gave utility owners until March 7 to decide on being for-profit or opt for non-profit. Clarington Mayor John Mutton says the decision is a good one for taxpayers. He says if the utility operated as a nonprofit nonprofit venture, its value would have decreased decreased by millions of dollars. 'This protects the taxpayers," says Mayor Mutton. The utility is co-owned by taxpayers in Clarington, Ajax, Pickering and Belleville and has assets of about $212 million. "It's a landmark decision," said John Wiersma, the utility's chief executive officer. "Not-for-profit is not a sustainable sustainable option. It's something that can't be considered." 'For-profif is actually a misnomer, said Mr. Wiersma. Rates wouldn't increase increase but would continue along with the provincial rate freeze for residential homes and small business until at least 2006. Because of that freeze, Veridian .,, isn't at a 10 per cent commercial rate of return, he said. It had hoped to implement implement a rate increase this March to reach that level, but because of the freeze, the utility is stuck at about a two per cent rate of return. Veridian expects to lose as much as $38 million in revenues over the next four years because of frozen commercial rates, said Mr. Wiersma. But the other option, not-for-profit, is a far worse scenario, he said. Two different different consultants have told Veridian the utility could lose as much as half its value with a zero rate of return. return. - with files from Keith Gilligan To have your flyers delivered by Durham's #1 Carrier Force! Call 905-579-4407 Wed., Feb. 5,2003 • Orono Lumber* • Sportmart* •White Rose* • Home Depot* • Millwork* • Future Shop* • Staples* • SAAN* • Brick* •Bay* • Your Good Health* * Flyers not necessarily In all papers Remember, all Inserts, indu (linn those on «lossy paper, van lie reeyeled with the rest of vour newspaper through vour Blue Box Recycling program. dling. In an effort to give almost all groups something, the mayor began asking councillors to reverse their decisions on some of the money already approved. The process left Councillor Charlie Trim shaking his head. "I have some concerns," he said. "There arc 16 applicants applicants that have not filled out any (financial (financial information) or any data. We don't know what is happening. I don't think we can make an intelligent and fair decision." decision." His plea fell on deaf ears. As the list of requests was read out, a mini-auction took place with councillors offering the dollar amount they thought the group should get. Many groups asked for the maximum donation of $5,000. Councillor Pat Pingle objected to giving giving money to groups she said were the Province's responsibility for funding. Although she stated Hospice Durham, which was asking for $2,000 is a worthy organization, "I will not help our provincial government. The more that we give... the more they will download download on us." However, Councillor Jim Shell argued argued Hospice Durham is a volunteer organization organization with, "no funding from the Province." Council agreed to send the group $1,000. Handouts included $3,000 to Bethes- da House, $5,000 to the Clarington Older Adult Association and $500 to the Royal Canadian Naval Association 50th Reunion Committee, which had asked for $5,000. Mayor Mutton said decisions arc made based on grants given in the past and delegations made at council. Joseph Caruana, Clarington's direc tor of community services, says he's "never comfortable with the process." However, he says he has backup on all the groups requesting money and councillors councillors "have the ability to call me," if they have any questions. He says he will work with staff to come up with improvements to how grant money is handed out. Late Monday, Mayor Mutton drafted a resolution he will present to council next Monday on how to improve the system. system. He's asking staff to review the practice practice and "set a standard grant allocation for each category of request." He's also suggesting groups be disqualified disqualified from getting a grant that exceeds exceeds the amount of its surplus from the year before. The grants will be discussed before full council next Monday. 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