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The Kincardine Scottish Festival committee wants to spread
its wings and become a corporation separate to the Municipality
of Kincardine - and the municipality is fine with that.
In committee-of-the-whole Wednesday night (Jan. 21), Dave
McFarlane of the festival committee presented facts and figures
to council, outlining how the incorporation would benefit both
the festival and the municipality.
This year is the 10th anniversary of the festival, said
McFarlane. The first event was held in July, 2000, and drew more
than 3,000 people and 12 bands. Last year, the festival
attracted about 12,000 people, with 27 bands competing and cost
about $175,000.
The family-oriented event also provides revenue opportunities
for local businesses and service groups. Last year, the Rotary
Club organized parking, the Kincardine Pathfinders helped with
garbage collection, and the Legion permitted the parade to
gather in its parking lot. The festival also allows community
involvement opportunities for the hundreds of volunteers
required. Last year, more than 300 volunteers helped out.
Currently, the municipality has final approval of the festival
budgets, recorded transactions and prepared financial
information, said McFarlane. The problem with is the festival
year-end is July 31, while the municipality's is Dec. 31. This
causes up to two months in processing delays for invoices, and
presents misleading information because two festivals are being
considered during the municipality's January to December year.
"It makes things difficult for the festival to manage its
budget," McFarlane said. "By incorporating, the festival can
switch to a July 31 year-end, maintain up-to-date financial
information, record expenses at the point of commitment; and the
municipality could free up the staff time required to maintain
the festival's books." (next column)
26/01/2009 09:47 PM
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The festival committee needs to be incorporated as a
not-for-profit entity or charitable corporation, McFarlane added. It
must transfer all financial responsibilities from the municipality, as
well as all furniture and equipment, contractual responsibilities,
copyrighted graphic material, and the reserve fund once the balance is
determined. One person from the municipality would also be designated to
negotiate the terms of transfer, likely the clerk or the economic
development and tourism manager.
He went on to say that the festival committee would appreciate continued
support from the municipality, such as use of Victoria Park and other
facilities on the festival weekend, traffic issues and road closures,
licences and other legal requirements, site security, site set-up and
tear-down, and any other issues both parties feel should be negotiated.
"The support that the festival has received in the past took the form of
in-kind donations," McFarlane pointed out. "Without it, the festival
would not be looking forward to its 10th consecutive event in July,
2009."
He said the festival is hoping to incorporate by March
31, 2009, and will hold its first annual general meeting in September,
2009.
In response to questions from council, McFarlane said the festival took
a loss of about $20,000 last year due to the Old Boys and Girls Reunion
three weeks prior. However, it believes it can turn things around this
year, he said. The festival will also be paying for its own liability
insurance.
"This is a good idea," said councillor Kenneth Craig. "Go for it. I
support it. The festival is a huge benefit for the municipality. It has
increased awareness of Kincardine internationally. We should maintain
the services we donated in the past."
"It's a more efficient operation this way," agreed mayor Larry Kraemer.
"The festival people do a great job."
"I'm confident we can build up reserves to cover any shortfall," said
McFarlane. "If not, we would seek support from the public, the same as
Kincardine Scouting did."
Council agreed, in principle, with the incorporation of the Kincardine
Scottish Festival committee and will let the festival and municipal
staff work out the details.
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