The Municipality of Meaford will consult with the Meaford General Hospital Foundation before deciding whether or not to cut its promised donation to the organization.

The Meaford Finance and Administration committee met Monday afternoon to consider a list of options to reduce the 2008 budget from the anticipated 30-per-cent increase in spending.

The donation to the Hospital Foundation was the first item up for discussion. In 2005, Meaford council promised $500,000 to the Foundation, to be paid out over seven years in increments of $75,000 per year. Deputy Mayor Francis Richardson pointed out at the meeting, under that payment plan, the municipality would donate $525,000 and he said there was some room to cut back if necessary.

"We have some flexibility," said Richardson.

The committee had to decide what course of action to recommend to council concerning the donation. The donation to the Foundation is one of several budget items council can look at cutting or eliminating as it tries to get the municipality's finances under control.

Several options were discussed at Monday's meeting. Richardson suggested the municipality could extend the payment process to 10 years to save on an annual basis. Public member Eileen Woods suggested the municipality reduce the amount in 2008 by $25,000 for an immediate savings.

Councillor Jim McPherson suggested the municipality put off the entire donation.

"Why wouldn't we defer the whole thing? That makes sense to me," said McPherson.

Public member Bert Chalmers chaired the Foundation's fundraising drive several years ago. He said he wouldn't participate in the decision-making process on the donation, saying he had a conflict, but he stayed at the table to offer information about the donation and the Foundation's plans for the money. Chalmers told the committee they needed to know how cutting the donation would affect the Foundation.

"Before you make a final decision, you need to find out the implications," said Chalmers.

McPherson said it was important for the municipality to discuss the issue with the Foundation.

"I'm not on the side of a huge tax increase this year, but we need to enter into discussions about the impact of cutting this donation. The Foundation might say: yeah, you've had a tough year, forget it," said McPherson.

Councillor Mike Traynor said any proposal to eliminate the donation completely was "harsh."

However, he said eliminating the grant might become an option, as council gets closer to a final budget number.

"As we get closer to the bottom line, maybe it's something we return to. I would support less, but I don't have a figure yet," said Tryanor.

Councillor Gerald Shortt argued that council should keep its promise and make the donation to the Foundation. He said he had plenty of areas in the budget he was ready to cut, before the donation.

"I don't like putting it off when we promised to do it," said Shortt.

The committee passed a resolution instructing Deputy Mayor Richardson to meet with Foundation Board President Dave Glass to discuss the municipality's donation and the impacts of a potential reduction of the amount that was promised. Richardson will report back to council next week.