City hall plans to proceed with projects that it delayed because of the pandemic, including the demolition of the YMCA building, the cost of which has risen by 37 per cent since April.
City administration presented a report during the Aug. 24 regular council meeting about Moose Jaw’s financial picture since the pandemic began in March. Included were updates about forthcoming capital projects, the equipment reserve budget, the general capital budget reserve, an analysis of cash flows, the utility capital budget, and revenues and expenses in the operating budget.
General capital budget projects
The delayed projects city administration will pursue this year include:
- Intersection upgrades for $682,835
- Gravel roadways for $160,300
- A slumping strategy for $110,000
- An extra $125,000 for Kinsmen Sportsplex building upgrades
- Dressing room upgrades at Pla-Mor Palace for $109,000
- Demolition of the YMCA building for $405,000; this cost was $295,000 in April and has increased $110,000
City council gave its approval to these projects, although not every vote was unanimous.
Operating budget pressures
The operating budget faces continued pressures from the pandemic, explained finance director Brian Acker. Some pressures include:
- There is uncertainty with collecting 2020 municipal taxes since the due date is Sept. 30
- Building permits collected so far are roughly $70,000, compared to the budget of $250,000
- Parking meter receipts collected so far are $160,000, compared to the budget of $750,000. Once collection resumes in September, a shortfall of $400,000 is still expected
- About $63,000 in tax penalties and surcharges has been collected so far; the budget was $343,000 while anticipated revenues will likely be $100,000
- Regular transit revenue is $100,000, compared to the budget of $309,000; total revenues are projected to be $200,000
- Parks and recreation revenues are down $400,000, although the reopening of some recreational buildings might offset that
“We have instigated a number of measures to decrease expenditures overall (by roughly $1.9 million). Those have been successful … ,” Acker said, “but as we now get into the reopening phase again, in terms of all the services getting back to normal, there is the potential for increased expenditures, of returning services to normal, and maybe extra expenses such as cleaning related to COVID-19.”
Funding for Mosaic Place is over budget and sits at $704,686, he added. City hall will likely have to provide an extra $300,000 to $400,000 to ensure the building reaches Dec. 31.
Equipment reserve budget
City administration plans to spend $5.2 million this year as part of its 2020 to 2024 equipment reserve budget, while it will spend $14.8 million during those five years, explained Acker.
“City administration has limited the equipment purchases this year to maximize our cash flows. We utilized that monies as a cushion for our overall cash flows …,” he said. “We have received funding from a number of sources, and right now, we stand in a very good cash position, so we see no reason why the equipment reserve budget can’t move forward.”
Cash flows
Meanwhile, the finance department analyzed the municipality’s cash flows in the general capital budget and projected there would be $12.4 million available for projects, Acker said. About $9.2 million has been committed, leaving an anticipated surplus of $3.1 million.
However, there will be shortfalls, he continued, including a shortfall of $200,000 in multiplex funding from the Moose Jaw Warriors, a drawdown of $500,000 for the municipal airport authority and a shortfall of $700,000 in the SPC project, leaving $1.77 million available.
Current cash flows in the water, sanitary sewer, and solid waste utility budgets are close to 2019 levels, so most of the funding for projects there is in place, except for the high-service pump house reservoir and cast iron replacement project, Acker stated. City administration had expected to receive federal funding of $10 million and $6.6 million, respectively, for those projects, but that money didn’t materialize.
One positive is the federal government could provide $3 million to offset transit and other pandemic-related costs, he added. City hall could use this money to counteract any deficit that arises from the pandemic.
The next regular council meeting is Tuesday, Sept. 8.
