City council has some tough decisions to make about how to fill a nearly $9-million capital budget hole, from increasing revenues to cutting projects to a combination of both.
City administration has $8,959,764 worth of core infrastructure projects — sidewalks, pavement rehabilitation, bridges, building improvements and parks upgrades — it wants to pursue next year, while it has $118.9 million in planned projects over the next five years.
However, it lacks the money for 2024, while it’s facing a shortfall of $59,502,430 over five years.
It was the giant financial capital hole for next year that council focused on during its Dec. 11 budget meeting, as city administration presented 12 options of how to find nearly $9 million in revenue.
After hearing the options, council voted to table the report so members could reflect on the choices.
This article looks at council’s discussion about the suggested parks and recreation cuts.
Parks and rec possible cuts
Derek Blais, director of parks and rec, said his department had identified 18 projects worth $790,000 that it could defer for a year or two.
The possible projects include Crescent Park upgrades, the playground renewal program, removing the Parkhill Park paddling pool, demolishing the Scouts’ Hall in West End Park, upgrading irrigation at the Rosedale Cemetery, pathway connection improvements, accessibility upgrades, new Kinsmen Sportsplex arena air handling units, and restoring the city hall bell.
Also, there is the community capital grant program, lighting upgrades at Pla-Mor Palace, renovations to the Kinsmen pool lifeguard room, ceiling repairs and painting at Mae Wilson Theatre and structural repairs to the Cultural Centre basement.
City administration’s views
Finance director Brian Acker said the city faces “some (negative) fiscal realities,” specifically, exponentially rising capital and operational costs. For example, parks and rec’s five-year capital plan was $7.3 million five years ago but has jumped to over $36 million.
“The reality is, we have an asset base that is rapidly deteriorating … . We are no different from a lot of other cities … ,” he added.
City manager Maryse Carmichael said city administration discussed all possible project cuts while she ensured all “big-ticket items” were considered. This included possibly permanently closing the Fourth Avenue Bridge or eliminating the outdoor pool project.
‘Living beyond our means’
Coun. Dawn Luhning reminded council that they had to address a $7-million capital shortfall this year, so if they pushed off some of next year’s projects, that would make 2025’s capital funding deficit an eye-watering $35 million.
“We have got to start realizing how far beyond our means we are because it’s not stopping … . So we need to put a hard stop on (constructing) new facilities and new programs and new services, possibly,” she said.
Building a new $55,000 cricket pitch in 2026 is likely out, while council is facing significant bridge repair costs in the coming decade, Luhning continued. Even though residents don’t want their services cut or their taxes raised — with the latter possibly being between eight and 10 per cent this year — council must do something.
“I just think we’re fluffing around the issues here. But let’s be realistic: we don’t have the money,” she said, adding some capital projects may have to be completely cut instead of deferred, which would save council financial headaches in the future.
Can’t defer everything
Coun. Heather Eby said she could live without some parks and rec projects but thought the Mae Wilson/Cultural Centre initiatives must occur, otherwise, it would become a run-down building “that’s no longer the jewel” of downtown.
Also, she appreciated the other options but didn’t think council could defer them.
Eby also commented on possibly amalgamating or closing venues. She couldn’t imagine which buildings those might be but thought it “wouldn’t fly” to close a hockey arena because citizens want and use them.
Instead, she wondered whether it was time to make the Fourth Avenue Bridge a pedestrian-only structure, which would be a “huge, massive, massive decision.” Or, maybe council should eliminate the outdoor pool project.
“… I don’t know that there’s anything huge (for projects) that the community would be happy about,” said Eby, adding that council must prioritize now and for the future.
Managing money
Coun. Crystal Froese wanted to see the city hall bell ring again, considering the city has possessed it since 2017. She noted that it would have cost $7,500 to install it then; now it’s $20,000.
Meanwhile, she questioned city administration’s ability to accomplish everything it has planned in a calendar year, pointing out that next year’s budget has millions of dollars in carry-forward project money that wasn’t spent this year. Moreover, since 2020, she noticed that some projects have had carry-forwards of $5 million to $11 million.
Froese pointed to the cast iron replacement program and said it has had an annual budget of $6 million, but city hall has rarely expended all that funding in one year. In fact, it wasn’t until two years ago that the city began to achieve its project replacement goals — and only because many changes occurred.
“But to me, I don’t think we will be able to complete the Fourth Avenue bridge (rehabilitation project) … without partnership funding,” Froese said.
“And right now, no one is rushing to the table to help us … . If we can accomplish that in a decade, I think we will be lucky because things are just not moving in that direction.”
Froese didn’t think the new outdoor pool would occur without partnership funding either, although council could borrow the money. While council has good intentions, she wasn’t sure they could accomplish everything in the budget and, if they thought they couldn’t, they should eliminate those initiatives.
Nobody likes tax increases
Coun. Doug Blanc appreciated the suggestions for reducing projects but was concerned about some items returning in the future. He was also concerned that some initiatives could increase in price the longer they wait, such as fixing the Cultural Centre basement.
“We are in a tough bind. There’s only X number of dollars here, and unfortunately, everybody wants zero (per cent) tax increases,” he said, adding that’s impossible due to inflation.
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