City council spent considerable time debating the 2023 budget and looking for items to cut to reduce the mill rate increase before eventually voting 6-1 — Coun. Dawn Luhning was opposed — to approve the document and a $65 parks and recreation infrastructure levy.
The Moose Jaw Express highlights some of that discussion.
Capital costs
Coun. Heather Eby understood the need for the $65 infrastructure levy to support the renewal of parks and recreation venues and appreciated that city administration reduced it from $100. However, she would have preferred a $50 levy.
One new item in the capital budget that caught her attention was the parks and rec department’s support to maintain the Golden Ticket Sports Centre — formerly Hillcrest Sports Centre. It will cost taxpayers nearly $411,000 to maintain the building.
“By voting to have that facility come online, we also took on the capital expenditures of it, which have now impacted our capital budget,” said Eby. “So … we have to continue supporting those decisions down the road.”
Another big item is the Cultural Centre needs a new cooling system for $870,000, which is not something that can be done halfway, she added. Council could reduce the pathway upgrades, but they would still need renewing in 2024.
The city is 100-per-cent responsible for all capital upgrades at the sports centre, while it has started a building reserve to replace items, city administration said. The venue’s roof is from the 1960s, so it must be replaced to keep the building in top shape.
A decade of infrastructure
It will cost over $400,000 to upgrade the Pla-Mor Palace, which is significant, said Coun. Crystal Froese. If the city doesn’t maintain it, then it will turn into another Natatorium, something she fears.
“It seems like this decade is all about infrastructure around this table and trying to make sure the assets we have built and services in those buildings can continue,” she continued, noting non-residents notice the quality of recreation venues. “If we don’t do it this year, it will only be more money (in 2024).”
The municipality is paying nearly $6 million in PST on its projects, Froese said, which “really kind of blows (her) mind” because it’s a ton of money. She thought the infrastructure levy wouldn’t be needed if the city could keep that money.
Higher costs
Coun. Doug Blanc didn’t favour the original $100 levy but realized it supported recreation venues and didn’t want to see another Natatorium either. Conversely, he acknowledged that no one wants levies to continue forever, while he also thought $50 was adequate.
He feared that costs would be higher later if the municipality didn’t upgrade its structures — like the Thunderbird (Fourth Avenue) Viaduct bridge.
If city hall reduced the levy to $50, it would be short $241,979 in the general capital reserve, so it would have to cut expenses in that area, city administration said. It has also pushed some projects into the future even though they are necessary.
Meanwhile, the parks and rec’s current five-year capital budget is $25 million compared to $8.9 million five years ago because of required upgrades, city officials added. If funding is not committed, then many venues will become non-functional.
“And therein lies the conundrum. What doesn’t progress this year?” said Froese. “How do we decide what’s more important: a roof or water tanks? I’m not sure that’s the way to go.”
Community identity
It was a mistake not to keep the sports centre under the city’s umbrella because numerous capital upgrades are now required, said Coun. Kim Robinson. However, he agreed that the community’s parks and rec venues needed to be maintained, so the levy was important.
“At one time, Moose Jaw’s very identity was known for its parks and recreation facilities. The Civic Centre was hugely recognized just from its view on the landscape … ,” he continued.
“I feel it is a value to invest in parks and recreation because it transcends the actual value amount it provides this community.”
Let’s co-operate
The levy is needed because the capital budget is facing a $1 million deficit, so to find savings, city council should cut expenses in every department proportionally, said Luhning. She wished city administration would co-operate with council to find ways to balance the budget because she didn’t think it was her job to tell them where to cut.
“Let’s work together as a team to balance this out,” she added. “I’m not willing to put a parks and recreation levy on the books to do that.”
Considering Canada is facing a major infrastructure deficit, it would not be a great strategy to tell each city department to cut their capital budgets because residents rely on those services, Froese replied.
“People don’t just move to a community because of garbage collection and water. People move because of great playgrounds and rinks (and parks) … ,” she continued.
Canada struggles
Mayor Clive Tolley didn’t favour making major cuts to the operating or capital budgets because council had already looked for savings. He noted that every Canadian municipality is having the same struggle, based on conversations at national meetings.
Council should start a savings fund for the outdoor pool so when construction begins on a new one, it can acquire matching federal funds, he continued. The Natatorium has heritage-protected status, so it will also require major renovations so it can be reused.
The city’s “Get a Life” campaign should attract more people, creating a bigger tax base, Tolley added. While a $65 infrastructure levy is tough, residents paid a $100 levy for the hospital, which produced “a fabulous new facility” that added to the community’s quality of life.
Needs versus wants
There were some years when the tax increase was 0 per cent, but those did nothing to upgrade infrastructure or parks and rec venues and now the city is playing catch-up, said Coun. Jamey Logan.
While one resident suggested council “trim the fat” from the budget, everything the parks and rec department requires is a need and not a want, he continued. Furnaces, roofs, boilers and water tanks require replacing, otherwise, the city will face a “comedy of errors” when those break down and worsen.
“… in this capital budget, I don’t see any wants in there,” agreed Eby. “Maybe a couple little wants like our paths to look better, but to me, this is a needs budget.”
