The costs associated with the Collingwood Judicial Inquiry have reached approximately $5.2 million.
Chief Administrative Officer Fareed Amin provided the latest estimate in an email to CollingwoodToday.
The inquiry has included two phases of public hearings so far, with the first focused on the sale of 50 per cent of Collingwood's electricity distribution company, Collus to Powerstream. The second phase looked at how the proceeds from the sale were allocated to build two fabric recreation buildings, one at Central Park Arena and one at Centennial Aquatic Centre.
Amin said the town is currently funding the inquiry from reserve accounts.
"We won't know about whether there will be, and the level of any potential deficit until later in the year/ early next year," said Amin.
On June 10, Treasurer Marjory Leonard presented a report to council estimating the inquiry would cost at least $4 million, and requested permission to access proceeds from the 2019 sale of the Collingwood Regional Airport and Collus to fund the inquiry bills.
At that time, the town had spent about $2.3 million on the inquiry.
Council turned down Leonard's request to use asset sale proceeds. The inquiry is being funded, in part, from the working capital reserve, which is typically used as contingency funding for urgent, unforeseen expenses, temporary cash shortfalls, unpredictable one-time expenditures, and business continuity in the event of a disaster.
The working capital reserve is maintained at $2.5 million. There's a capital contingency reserve kept at $1.5 million, an operating reserve at $327,000 and a general reserve fund for the town hall and library usually at about $500,000. However, the town purchased a new generator and did some work on the brick exterior of the town hall this year, which was paid for using the general reserve fund.
Leonard said, in June, the town is required by law to have a balanced budget, and any deficit will come out of the 2020 budget before any other expenditures.
There is still one more phase of the inquiry, with approximately four days of public hearing. The final phase will include testimony from experts in municipal governance to help Justice Frank Marrocco prepare his report and recommendations for the conclusion of the inquiry.
