Under budget, over budget
With three out of four of its capital projects coming in under budget and one coming in well over, the operations department gained council’s approval to make up the deficit by reallocating funds from its under budget projects, July 15.
Because of an increase in the cost of concrete, the Caribou Creek sidewalk project came in $108,000 over budget. So, $70,000 was taken from the lane way project on the 800 block of Connaught Drive and $40,000 was taken from the paving project at the waste water treatment plant to cover the difference.
By reallocating the funds, it ensures that the Caribou Creek sidewalks can be completed this year, explained Bruce Thompson, director of operations.
Council gave unanimous approval to the request, but not before Mayor Richard Ireland could raise his concern about the budgeting process.
“It’s great that two projects came in under budget so we have some extra money,” he said, “but this is a 35 per cent increase in our budget on that item: if you projected that onto the library, where would we be?”
Ireland went on to say this situation highlights a flaw in the municipal budgeting process.
“It just points out the absolute impossibility of doing really accurate budgeting, particularly when there are delays in construction, as there was here and the cost of concrete goes up [during that delay].”
To remedy this problem, Ireland said there would need to be changes to the budgeting requirements in the Municipal Government Act, but those aren’t forthcoming.
Grant spending up for decision
Council will vote on what projects to support with its $169,990 in operating grants, Aug. 5.
Projects proposed by administration include a new irrigation system for the ball diamonds at Centennial Park, a new rooftop unit for the Jasper Activity Centre, a new email server and repairs to the Emergency Services Building.
Council will receive a complete list of possible projects at the Aug. 5 meeting and will decide which ones to support with the municipality’s Municipal Sustainability Initiative (MSI) Operating Grants from the provincial government.
The municipality has $101,615 in grants carried over from 2013, as well as an additional $65,375 grant for 2014. It can choose to carry forward all or a portion of the 2014 allocation to next year, but it must spend the funds from 2013 before December.
Alice Lettner, director of finance, said the proposed projects are her suggestions. If council denies the request, the Emergency Services Building repairs would be financed from restricted funds, upgrades to the municipality’s email server would be delayed and the new irrigation system for Centennial Park would have to be funded from the Culture and Recreation restricted fund, forcing the department to readjust its priorities.
“If we don’t do the irrigation we could possibly lose the turf and if we lose the turf, then reestablishing it is even more difficult,” said Lettner. “So my suggestion is that we would be best to allocate some money to repair the irrigation system at this time.”
CAO appointed
Mark Fercho was appointed as the town’s new chief administrative officer, July 15, with a unanimous vote from council.
Mayor Richard Ireland was quick to note that the vote was merely procedural and Fercho, a former park warden and CAO for Mackenzie, B.C., has already been hired for the position.
Fercho is replacing Peter Waterworth, who announced his resignation in February—two years after he joined the municipality.
He and his family will arrive in town at the end of August, as Waterworth makes his exit.
Nicole Veerman
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