Let’s be clear.

The town is fortunate to receive grant funding for several of its capital projects. The library expansion, activity centre upgrades and pedestrian underpass are worthy projects and deserve the financial support they have worked so hard to achieve. The town will be richer if these projects go ahead.

However the town of Jasper must be very careful in re-opening the capital budget. 

Capital budgets are blueprints for the upcoming year. In their passing, a roadmap is produced for the town, and large capital projects are approved after careful deliberation between council and staff. Strong planning allows the municipality to determine a proper workload for its staff and hopefully, capital projects move quickly. By re-opening the capital budget, the roadmap becomes redundant and the budget process is undermined. Not only does it involve a shifting of funds, it also pulls staff from project to project, creating inefficiencies and increasing the potential for nasty surprises to rear their head. To hear that this may not be the only time the town opens the capital budget is a cause for concern. Will we need to wait until November for a final 2009 capital budget?

While we understand projects can pick up and fall off the books for various reasons, there is a limit. Reopening the capital budget only four months after completion and waiting until July to pass another version does not paint a picture of financial prudence. Accountability begins to wane and projects become grant dependent. Budget time is quite intensive for staff and council. Is this the best way to use these resources?

Does this mean citizens will need to watch carefully to ensure their tax bills don’t change? 

Yes, the municipality should be flexible enough to adapt to a changing economic situation. Yes, taking advantage of federal grant money will keep municipal taxes down. However, can’t these changes be made through amendments to the capital budget? Is re-opening the entire plan truly necessary? The municipality should have the ability to build flexibility into capital projects. Waiting for the next round of grant money doesn’t suffice.

Re-opening allows for major priority shifts throughout. How does one maintain a workable five-year plan with such shifts?

The funding formula also plays a role in such uncertainty. The rigid grant formula sent down from the federal government - money for ‘shovel-ready’ projects only - promotes such a structure. Without a steady, sustainable funding plan, many municipalities don’t have a choice but to re-open their capital budgets invoking the ‘by the seat of our pants’ style project management.

While the ends justify the means, council must be careful sacrifices of process don’t become permanent.