Penhold town council held its initial budget presentations Nov. 28 and left a big question lingering.
During the presentations, Nancy McAteer, public works manager, explained that finding funds for a new intersection will be a challenge.
“With Melcor coming on board soon for their development north of the multiplex, we will have to change the Highway 42 intersection,” McAteer said. “The completion of the school project also affects the type of intersection we need, whether it is type two or type five. Type five intersections offer more traffic options, such as a residential section might require. Type two is the cheapest, and pegged at $400,000 while the type five brings a $1.2-million price tag.”
Mayor Dennis Cooper indicated the availability of some reserve funds to assist with road construction.
Cooper commented that as presented, the budget would require a double digit tax increase to offset the cost of the intersection but noted there is still more discussions to be had before a final figure is determined.
CFO Linda Hollman noted that the Municipal Sustainability Initiative (MSI) grant was going to be reduced by 40 per cent in 2014 to $90,395, down from $150,568 in 2013, 50 per cent in 2015, and completely eliminated in 2016.
She expressed concern.
“Any decrease in government grants makes it more difficult for towns to balance their budgets. It will be a challenge, but we will have to make up that difference somehow,” Hollman said.
“There may be a change to our revenue allocations depending on our negotiations with the county over the Intermunicipal Development Plan,” Hollman added.
She also said her pending retirement in July 2014 will mean a job shadow position is going to be created.
Facility manager Derek Crichton spoke about the multiplex and arena budgets, noting that movement had been made towards a revenue neutral position. Since council agreed earlier this month to turn on the heat during Red Deer College Kings games, other user groups have reached out to Crichton. The cost of providing heat for more user groups was discussed, but a concrete number was not given.
“With the FCSS partnership developing,” Crichton said, “we know doors will open for more users, and the resulting joint use agreements with the school and community partners will change our revenues. We just don't know how yet.”
He expressed excitement over the unveiling of the gymnasium expansion Dec. 4 and the potential of a card lock system for the fitness centre in the multiplex, which would allow longer hours, and offer secure access for users.
An increase to water and sewer rates was discussed, and options were presented to bring water services to cost recovery. Facility upgrades were suggested to deal with the lack of pressure on the north end of Penhold.
Presentations to Mayor Dennis Cooper, councillors Mike Yargeau, Sharolyn Sanchez, Kathy Sitter, Cory Kingfield, Julia King and Mike Walsh were made by CFO Linda Hollman, facility manager Derek Crichton and public works manager Nancy McAteer in front of a small audience.
A followup budget meeting will be held Monday, Dec. 3 to further discuss issues.
