Council to ponder capital budget

“We have a significant number of funding capital projects that are coming up this year,” says Cori Ramsay, Chair of the Finance and Audit Committee. “You know, there’s a lot of work around trails and playgrounds, around sidewalk rehabilitation, as well as some some pedestrian safety enhancements. You know, we are also seeing investment in sewer water, the less popular things.”

There are over 70 capital projects the Finance and Audit Committee has addressed prior to the budget. But there are a number of projects still sitting on what is called the “unfunded” list.

“Typically something’s ‘unfunded’ is because we don’t have the reserves to fund it properly. And so we would have to discuss either pulling something else off the list in order to free up money to fund the project that Council would like funded. Or another option would be to take it to a debt-funded process.”

There are no new debt-funded projects in the works for this year, aside from the annual fleet equipment purchases.

“There’s a limit to what we’re allowed and it’s prescribed by the province. It’s based on our revenues that we take in. Our ability to pay essentially. And we’re just under that half halfway mark to where the province would say no more. And I think that number is close to $300 million, is the amount of principal that we’re still allowed to borrow before the province would say, no, you need to stop.”

There are a number of sources to fund capital works. “Some of it is raised through taxes. So on your tax notes, you would see a road rehabilitation fund that would just fund our capital for roads,” says Dalio. “There’s the General Infrastructure Reinvestment Fund, which funds buildings and anything else that really that requires reinvestment. It can fund new stuff. We have gaming revenue that comes in. We have we get 10% of the net revenues from the casino in town. The City has received just over 3 million per year from that Community Works Fund, more commonly known as the gas tax, is coming to an end next year. “A lot of that money is funding is required to be used on specific projects, but it’s helping with our playground replacement, it’s helping with our trail rehabbing and our sidewalks and a number of other things so that this is the last year that we have access to that funding. The ten-year agreement with the federal government ends in 2024.”

However, the Union of BC Municipalities says it is in negotiations with the federal government to have that agreement renewed.

by Cheryl Jahn

Council to ponder capital budget

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