LAURIE WEIR
A new funding agreement between the Town of Smiths Falls and the Railway Museum of Eastern Ontario (RMEO) will be finalized with council input, following months of discussion about the museum’s financial needs and long-term viability.
At the April 14 committee of the whole meeting, councillors reviewed a draft Memorandum of Understanding (MOU) that outlines the terms of a $50,000 contribution from the town for 2025. The agreement includes accountability measures and makes clear that any future funding would require separate approval.
The draft agreement follows an October 2024 presentation by RMEO, who requested $50,000 annually for five years to support capital needs and operations. The heritage site — located on the grounds of a former Canadian Northern Railway station — has faced challenges in recent years with aging infrastructure and limited revenue streams.
Town staff had initially proposed cutting the 2025 allocation in half, to $25,000, in a draft budget tabled in February, citing concerns over hitting the town’s targeted tax rate. But following pushback from several councillors, the full $50,000 was restored, with an added call for tighter controls on how the funds would be used.
Under the proposed agreement, the museum must use the money strictly for “major capital and infrastructure expenditures,” and submit a detailed financial report by Dec. 31, 2025. That report must include a breakdown of how the funds were spent, along with current financial statements. Any unspent money would carry over to the following year.
There was confusion earlier this year after RMEO’s executive director, Becky Allen, interpreted council’s direction during budget talks as a commitment to five years of unrestricted funding. While Allen said the funding would be used for capital projects, she requested that no unnecessary conditions be added unless specifically directed by council.
As drafted, the MOU applies only to 2025 — not a multi-year commitment.
During Monday’s meeting, Director of Corporate Services Paul Dowber reminded council that the museum had been advised multiple times that ongoing funding would not be guaranteed.
Coun. Dawn Quinn acknowledged the museum’s contributions to tourism.
“It brings people to town,” she said. “Let’s help them move forward and stay a major draw for this town. I don’t want to tie their hands.”
Council ultimately supported moving the MOU forward, requesting some revisions before final approval. The updated terms include:
- A five-year funding framework, subject to annual approval through the budget process
- Funds limited to capital projects
- Annual reporting on how the money is used
- Any unspent funds to carry forward into the following year
The $50,000 allocation is already included in the town’s approved 2025 budget.
RMEO is widely regarded as a key player in local tourism and heritage preservation. Its collection of railcars, exhibits and events draws visitors from across the region and adds to the town’s historical identity.
