This week, the City of Hamilton released more details regarding a new 49-year lease with TradePort International Corporation for the operation of Hamilton’s International Airport.
Council approved the deal in May, at the time the City released a statement that Tradeport was committed to spending $400-million “to further develop and expand” the airport over the 49-year term.
The City has not disclosed if $400-million commitment includes inflation adjustments.
Council has not released the lease.
Discretionary Fund Being Formalized
This week’s release includes the disclosure of a “$30,000 annual contribution” to a new Ward 11 councillor discretionary account.
Ward 11 Clr Mark Tadeson stated the new fund is a formalization of past community benefit contributions the airport has made over the years.
Tadeson says the funds are used for community projects, beautification, and improvements in the area surrounding the airport.
He says residents support the airport and understand that noise and traffic come with living in Mount Hope.
Tadeson noted Hamilton’s airport is a 24/7 operation, with cargo flights at all hours of the night.
He says the $30,000 community benefit is a “good faith gesture” from the airport.
Discretionary Funds, Known Internally as Slush Funds
Discretionary accounts are internally referred to as “slush funds” because of how they are used for projects without the usual approval processes.
On June 7, 2022, during testimony at the Red Hill Valley Parkway Inquiry by a retired Public Works Director of Energy, Fleet, and Traffic, he responded to a question by referring to discretionary accounts as “slush funds.” [YouTube video link]
Council Seeking to Expand Discretionary Slush Funds
Residents in the old City of Hamilton (Wards 1 to 8, and Ward 14) pay higher taxes than the suburban wards placed in ‘area-rated discretionary funds’ that are spent solely at the decision of their ward councillors.
Officially, these slush funds are a “special capital infrastructure levy” and should only be used to fund traditional infrastructure. Past Hamilton councils have created the term “social infrastructure” to permit the funds to be spent on nearly anything that ward councillors wish.
During this term of Council, many suburban councillors have sought ways to get their own “discretionary accounts” without using the tax levy.
In Ward 5, in a deal with the Centennial Parkway SmartCentres at the South Service Road in Hamilton, the developer agreed to “provide” the City “with a one-time lump sum payment of $50,000.00 plus HST” to “enhance community facilities, esthetics and resources within the area of Stoney Creek.” The SmartCentre is located in the Riverdale community, not in Stoney Creek.
Due to the City of Hamilton’s February cybersecurity failure, the City is unable to say how much money is in various slush fund accounts.
Production Details v. 1.0.0 Published: November 17, 2024 Last updated: November 17, 2024 Author: Joey Coleman Update Record v. 1.0.0 original version