Town says audited recreation costs are provided annually and it has no record of outstanding requests for additional financial information
The Town of Smiths Falls is disputing statements made at a Rideau Lakes council meeting that repeated requests for financial information related to the municipalities’ recreation cost-sharing agreement have gone unanswered.
The issue surfaced during the Aug. 10 Rideau Lakes committee of the whole meeting following a routine recreation update from Recreation and Volunteer Coordinator Leila Stafford.
During discussion, Coun. Paula Banks raised concerns about the Town of Smiths Falls and the existing recreation agreement.
“What bothered me is we have asked for their financials several times, and they just keep ignoring that request,” Banks said. “I know other municipalities have asked for their financials, so I would like a direct answer on why we’re not getting financials or at least an answer on the ability to have more input or say in the operations.”
The existing recreation cost-sharing agreement allows residents of participating municipalities to use Smiths Falls recreation facilities at the same rates as town residents, while the municipal partners contribute toward the portion of eligible operating costs not recovered through user fees.
The agreement covers the Smiths Falls Memorial Community Centre and Youth Arena and includes the Township of Rideau Lakes and other participating municipalities. Contributions are calculated under a formula set out in the agreement using the previous year’s audited recreation costs.
The current agreement expires Dec. 31, 2026, and is separate from the Regional Recreation Facility Steering Committee established to explore a potential future recreation facility.
Hometown News asked Smiths Falls Director of Community Services Stephanie Clark whether Rideau Lakes had made repeated requests for financial information and, if so, what had been requested and provided.
“As far as I am aware, the Township of Rideau Lakes has not made repeated requests to the Town for additional financial information related to the current recreation cost-sharing agreement,” Clark said.
Clark said she also checked with the town’s director of corporate services.
“He is not aware of any outstanding requests for additional financial information,” she said.
Clark said Smiths Falls annually provides its municipal recreation partners with audited financial information identifying facility costs that are not recovered through user fees.
“This information is provided to all cost-sharing partners, including Rideau Lakes,” she said.
Under the existing agreement, Clark said Rideau Lakes is entitled to receive annual audited financial information related to the costs covered by the cost-sharing arrangement.
“That information is provided annually in accordance with the agreement,” she said.
The Aug. 10 discussion at Rideau Lakes follows concerns Banks raised several months earlier over financial information associated with the existing recreation agreement.
At the May 25 committee of the whole meeting, Banks said neighbouring municipalities had been seeking clearer financial information and recreation user data from Smiths Falls.
“Since 2014, we have been asking for clear financial records from the Town of Smiths Falls,” Banks said at that meeting.
That discussion occurred as Rideau Lakes considered whether to participate in the Smiths Falls Regional Recreation Facility Steering Committee, which was established to provide regional input as Smiths Falls explores a potential future recreation complex.
Rideau Lakes ultimately voted to defer participation in the steering committee until the next term of council. A separate motion seeking additional financial and governance information related to the current recreation agreement failed on a tied vote.
Smiths Falls has maintained that the two matters are separate.
Clark previously told Hometown News the steering committee is concerned with potential future recreation facilities, while negotiations over the current cost-sharing agreement concern existing facilities.
Smiths Falls council endorsed creation of the steering committee earlier this year to provide regional partners and user groups with an advisory role in early planning. Operational control, procurement, budgeting and staffing for a future facility would remain with Smiths Falls and be subject to its council’s approval.
The existing cost-sharing agreement also does not give Rideau Lakes an operational or governance role in Smiths Falls recreation facilities, Clark confirmed this week.
“The current agreement is a cost-sharing agreement and does not provide Rideau Lakes, or the other municipal partners, with an operational or governance role in Town of Smiths Falls recreation facilities,” she said. “The facilities remain owned and operated by the Town of Smiths Falls.”
There was, however, a separate outstanding matter acknowledged by Rideau Lakes staff during the Aug. 10 discussion.
Before Banks spoke, Rideau Lakes CAO Shellee Fournier said the township had sent a request for a one-year renewal of the existing agreement and was awaiting a response. Fournier said she would follow up with Clark.
The current regional recreation agreement expires Dec. 31.
Meanwhile, Smiths Falls is continuing with its Regional Recreation Facility Steering Committee despite Rideau Lakes’ decision to defer participation.
“Yes. The Steering Committee is proceeding with its work,” Clark said. “Rideau Lakes’ decision to defer participation does not prevent the other participating municipalities and committee members from moving forward with the process.”
Clark said Smiths Falls’ position has not changed since May and Rideau Lakes remains welcome to participate.
“The door remains open for the Township to participate when it is ready to do so; we look forward to their input when they are ready to participate,” she said.
The purpose of the committee, Clark added, is to explore the potential for a future regional recreation facility.
“We are keen to have our current partners on board so that we can create a space that is meaningful to all of our residents,” she said. “That work can continue while individual municipalities are of course free to determine the nature and timing of their own participation.”
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