Web Notifications

SaltWire.com would like to send you notifications for breaking news alerts.

Activate notifications?

Georgetown Fire Department's 'slush fund' raises the ire of auditor, Three Rivers council

Three Rivers Town council pass motion to provide funding for Georgetown Fire Department, but the department is dealing with a financial audit

Town of Three Rivers Mayor Edward MacAulay deliberates at a town council meeting on Tuesday, Nov. 12 at the Kings Playhouse in Georgetown.
Town of Three Rivers Mayor Edward MacAulay deliberates at a town council meeting on Tuesday, Nov. 12 at the Kings Playhouse in Georgetown. - Ernesto Carranza

STORY CONTINUES BELOW THESE SALTWIRE VIDEOS

Olive Tapenade & Vinho Verde | SaltWire

Watch on YouTube: "Olive Tapenade & Vinho Verde | SaltWire"

GEORGETOWN, P.E.I. — This week's Three Rivers town council meeting turned into a heated half-hour inquiry about the financial situation of the Georgetown Fire Department.

Council was discussing a funding request to purchase and install a new $39,000 paging system for the fire department, as well as a $42,000 generator that would turn the fire hall into a warming centre.

Coun. Cody Jenkins introduced the motion for the town to apply for the funding.

Jenkins told council $15,000 would be provided by the Georgetown Fire Department, $10,000 would be provided through the Rural Fire Department Surplus, $25,000 from the Community Revitalization Program and up to $25,000 from the town from the renumeration money in the town budget.

Jenkins said the difference would be made up from rebates.

The new generator would be the same design as the Montague Fire Hall’s generator and could be serviced at the same time.

Coun. David McGrath asked if the fire department had resolved a previous audit issue that what was discussed in a previous in-camera council meeting.

CAO Jill Walsh said the matter is still on-going. She later said that the town is responsible for any funds generated by any of its branches, like the fire department, and is subject to any and all audits.

“(The fire department is) rectifying the issue. They explained that,” said Jenkins.

The Georgetown Fire Department received a qualified audit or opinion, which means an auditor cannot be 100 per cent sure the statements – in this case for the fire department – are correct because the auditor was not able to obtain all the fire department’s financial information.

In the case of the Georgetown Fire Department, it would not disclose a separate bank account it has for fundraising money. 

This can potentially cause issues with getting money from lenders, but Jenkins said he didn’t think the town would have any problem getting money from lenders.

“The money they have, it is not taxpayers money, it is not money we collect from property tax, it is fundraiser (money),” said Jenkins.

“It isn’t taxpayers money that they are hiding from us … It is a trust issue they have with us.”

Georgetown fire chief Mark Gotell speaks at a Town of Three Rivers council meeting on Tuesday at the Kings Playhouse in Georgetown. Ernesto Carranza/The Guardian
Georgetown fire chief Mark Gotell speaks at a Town of Three Rivers council meeting on Tuesday at the Kings Playhouse in Georgetown. Ernesto Carranza/The Guardian

At this point, Mayor Edward MacAulay acknowledge Georgetown fire chief Mark Gotell, who was sitting in the gallery.

“At the last committee of council meeting, I made a presentation to council, I told them we are working to resolve this and give the information to council in regard to the bank account,” he said.

“First of all, this (motion) regarding the paging system, should have nothing to do whether we have given the books, asked or not asked. This is people’s lives that are on the line.”

Gotell went on to say that firefighters need a system so they can be notified of emergencies going on the in the community.

During post-tropical storm Dorian, Gotell said cell service was unreliable.

“So if the council wants to put people’s lives on the line in the Georgetown fire district, then that’s your decision,” he said.

“I am not going to be a whistleblower, but I know of other organizations that are funded by Three Rivers and have a slush fund, the same as we do and are not asked to produce (their) books. And it is unfair and I am getting tired of it.”

At this point, MacAulay interrupted Gotell.

“You had a separate bank account,” he said. “That’s why the audit happened.”

Gotell objected to this point and said that he knows of three other organizations with other bank accounts. Gotell then stormed out of the council meeting.

Deputy mayor Debbie Johnston proposed an amendment to the original motion, to ensure that the fire department resolve its financial issues while the town applied for its funding.

The amendment was voted down 9-3 and the original motion for funding was passed 8-4.

Twitter.com/Ernesto_Carranz

Share story:
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT