Missing money stalemate

Times Contributor

 

A stalemate needs to break between the Strathmore Rural Fire Association (SRFA) and the County of Wheatland. A six-month tug of war leaves the Association with only enough money to make two payments on equipment loans. 

The residents in the Strathmore Rural Fire Rescue Area 2 could lose fire service if default happens. Rescue Area 2 is the largest zone in the county. It surrounds the Strathmore town site north, east and west. 

“I don’t know how the County expected us to pay for these vehicles. We are forced into buying these vehicles; they have a jurisdiction about what kind of trucks we have to have,” said Lou Delgado, Interim President for the SRFA. “It was no fault of ours that we fell into this situation.”

The SRFA makes payments on the equipment of $7,200 per month. They cannot handle these heavy payments. After an audit this spring, an investigation discovered the disappearance of over $100,000 with missing receipts. The RCMP has charged the past Association secretary/treasurer and no money is expected to be recovered. Delgado said that the Association does not even have enough money to sue her. The association has been utilizing operating funds to keep trucks in service.

“No matter what the County says, we are the victims here,” said Delgado. 

The SFRA members work casinos to earn  money. Due to gaming regulations, little of the money can go against the loan. No money has come from external money sources approached during the stalemate. Yet, SRFA president Lou Delgado still hopes there are contributors out there that will come to the rescue with last minute miracle money. 

In credit crises, credit councillors encourage debtors to talk to their bank representatives. The banks normally flag accounts at 30-90 days in arrears. The bank provides a formal notice and request that the parties meet to discuss the situation. There are options offered such as refinancing, devising ways to bring the payment down, or deferring payments or the interest for a limited time. The bank may review the file and ask for a financial statement to help the client gain an understanding of his situation. The SRFA have not approached their lending institution.

The County is heavy with demands for accountability and responsibility, for funds authorized on behalf of ratepayers. They want the SRFA to honour their commitment to 40 per cent of the loan repayment. The County still holds $45,000 in reserve from 2012 funding, which won’t be released to the SRFA until missing receipts are given. Councillors aren’t convinced that if the funds are released, the SRFA won’t need on-going support. As security, the County put liens against the equipment. If the equipment goes to repossession, the County would lose money, or they would pay more to take over the loan.

The County hasn’t publically admitted that some of the situation intensified. They originally approved the purchase of the vehicles. With SRFA consent, they redistributed fire funds, previously given to SRFA, to other county fire departments to keep them operational. They instituted a new accounting process, previously not required for funding allotments. To date none of the other fire associations in the county are experiencing problems similar to the SRFA. There are currently nine fire departments in the County. Each will eventually need equipment replacement.

SFRA acknowledges the new accounting requirements did help them identify they were victims of theft and it pointed to a financial weakness for the organization. However, they want council to recognize the integrity of the other board members dealing with this issue and the contributions made by the fire department.

The Strathmore Rural Fire Department (SRFD) firefighters are caught in the middle, left with a festering wound given them by the theft of funds. If the County released $45,000, it could help the SRFD keep the equipment and scrape through until the 2013 funding allocations. 

“We need residents support! These guys jump into their boots at 2 am in the morning to go out to calls. The association cannot even afford to give them a small stipend for Christmas,” said Delgado.

The volunteer firefighters used to get a flat $30 payment for training sessions or callouts. It is the same whether it is a two-hour session or an all-night fire incident. That payment can no longer occur.

Delgado said the Association could talk to the bank and perhaps renegotiate the loan, but the missing funds still leave them behind an eight ball. He said he thinks the county could take over the equipment payments, give them operational money and the association could arrange to make reduced payments back to the county. The last resort is to declare the inability to provide service and have the department walk out until arbitration can commence and the County negotiates.

The County has not publically indicated how they would provide fire services for Area 2 without SFRD equipment, or what actions it will take to rectify the situation.