In the last municipal election, Ward 6 councillor Tom Adams donated $1,200 to Rob Burton's bid to be re-elected as Oakville's mayor.
Stephanie Adams, who lives at the same address, was equally generous. She also sent Burton $1,200 – the maximum donation an individual can make to a candidate under the Municipal Elections Act.
Ward 5 councillor Jeff Knoll and his wife combined to donate $2,400 to Burton, as did Ward 6 councillor Natalia Lishchyna and Taras Lishchyna.
Ward 4 councillor Peter Longo kicked in $1,200, as did April Gamache, who lives at the same address.
And in a reciprocal show of generosity, both Rob and his wife Wendy Burton made the maximum allowable donations of $1,200 to Adams, Knoll, Lishchyna and Longo.
On top of that, the Adams family and the Lishchyna family exchanged $1,200 donations.
All of these donations are detailed in the 2018 candidate financial statements publicly available online.
What's the purpose of all this donation swapping?
It turns out, however, that all those politicians are only half as generous as they sound.
Since 2003, Oakville has given a 50 per cent cash rebate to local voters who donate at least $100 to the campaign of a municipal candidate.
The program, which cost taxpayers about $100,000 for the 2018 election, was created on the recommendation of a citizen committee looking to encourage participation in municipal politics.
While donations to federal and provincial political parties are tax-deductible, there's no tax receipt for giving money to a municipal candidate. The rebate program aims to make it easier for candidates to fundraise by spurring citizen contributions.
There's one catch to the program: candidates and their spouses and family members aren't eligible to be reimbursed for donations to their campaigns.
But Burton can make a rebate claim for money donated to Adams' campaign. And Adams can make a rebate claim for money donated to Burton's campaign.
Donation swapping appears to offer councillors a loophole around the rules that stop them from benefitting from funding their election bids.
"I guess it could be perceived that way," admits Knoll, who said he and his wife claimed the rebate for their donations to Burton.
"I mean, the reality is that I supported (Burton), he supported me, and a number of us supported each other because we like working together, and we wanted to see each other's campaigns succeed."
Whatever the reality or perception, the rebates earned by the mayor, those four councillors and their spouses account for more than 10 per cent of the cost of the entire rebate program in 2018.
Council votes to keep the maximum rebate
Despite that, neither Burton nor any of the councillors declared a conflict of interest when the issue came before council on Oct. 18.
A report from Oakville's town clerk Vicki Tytaneck recommended that the rebate to donors in the 2022 municipal election campaign be capped at $375 per contribution.
By reducing the maximum payout from $600, the town could save about $24,000, Tytaneck suggested. Savings would help cover anticipated new pandemic-related costs for next October's election.
The reduction would also bring rebates in line with most of the eight other similar programs nearby municipalities offer.
With little discussion, councillors rejected the change and voted unanimously for a revised motion to keep the rebate at the $600 maximum.
Adams, whose family received $2,400 in rebates for 2018 contributions to Burton and Lishchyna, moved the revised motion.
"The effect is simply to move us back to where we were at the last election, in terms of the way the rebate program worked, which I believe worked well for the community," he said.
In an interview with Oakville News, Adams said he gave Burton money because he believed he was the best candidate for mayor. He said he and his wife claimed a rebate for donations because "the program is open to residents and we're residents."
Regarding the perception of donation swapping, Adams said, "The program is designed to encourage individuals to make donations, and I think it's successful in that."
Finally, he said declaring a conflict of interest on the issue was not necessary.
"I think if you looked, you'd find a large number of council members made contributions, and you'd have a situation where council couldn't make a decision," said Adams. "There is a process within the conflict of interest act that allows decision-makers to make decisions like that."
Knoll added that the program offers an important fundraising benefit to candidates looking to challenge incumbent politicians for council seats.
Burton, Lishchyna and Longo did not respond to our requests for an interview on this subject.
Freedom of Information request filed
While the details of donations made to all candidates are available online as a matter of public record, the town doesn't offer the same level of transparency around the rebates.
Presumably, Burton and his wife were reimbursed $4,800 for their contributions to the campaigns of fellow councillors.
And presumably, Lishchyna, Longo and their spouses all collected $600 for their donations to Burton.
But we can't tell you that for sure, as the town won't release a list of people who received rebates without a formal Freedom of Information request.
We have made that request and are hopeful that the town will abide by legislation that requires it to respond to FOI requests within 30 days.
The history of the rebates
"The primary purpose of the program is to encourage participation in municipal elections by reducing the financial burden placed on candidates and campaign donors," explained the report from Tytaneck.
Launched in 2003, the program initially offered a flat rate $200 rebate for donations. For the 2010 election, councillors voted to set the rebate at 50 per cent of contributions. At that time, the maximum allowable contribution to a candidate was $750.
In the most recent election, donations from corporations and trade unions were scrapped. Municipal candidates may now only receive contributions from individuals who are residents of Ontario. The maximum campaign contribution to a single candidate was increased to $1,200, with a $5,000 cap on the amount any person can donate to multiple candidates running for positions on the same council or school board.
Councillors approved increasing the maximum rebate under the program to $600 per contribution.
Despite the increasing cost of the rebate program to Oakville taxpayers, it appears to have failed to increase the number of people contributing money to municipal campaigns.
In 2018, the town paid out $99,948 to 292 donors. In the 2006 election, 364 donors claimed $25,008.
Town of Oakville
