Outgoing CAO Norm McInnis says council will have some tough calls to make as 2017 budget discussions continue.
As it stands, council has been presented with a proposed $11-million draft capital budget, a "fairly ambitious" plan he says that still needs changes.
The proposal would have a significant portion of next year's capital spending funded through borrowing -- $4.7 million of it. That would be more than the entire 2016 capital budget.
"There's lots of very worthy projects involved," McInnis said. "I think council and administration here really have their work cut out for them to get a capital budget that's going to work for all of the needs and still be realistic on costs."
An athletic park in the northwest near Walmart headlines the draft capital budget. McInnis said that includes new ball diamonds, soccer fields, a toboggan hill and outdoor BMX track. Before that development even starts, road and water infrastructure would need to be built. Total cost: about $4 million in debenture spending.
Coun. Mary Jane Harper said she expects council to approve the project because of the town's dearth of playing spaces needed to accommodate the growth in soccer and ball enrolment.
The minor soccer association has stated in the past that the town does not have the facilities to host district and provincial tournaments. Harper believes there would be economic benefits in being able to hold those types of events, which she says would fill hotel rooms and restaurants.
"It would be a great economic impact being able to host all types of sporting events in our community as opposed to just hockey in the winter," she said.
While not included in the 2017 capital budget, the town's operations centre is another big-ticket future expense that council will have to discuss. It is an $8-million facility that could house the town's vehicles and equipment, sand and salt for roads, materials for road repairs, pipes for the water system, garbage bins, and office space.
Harper said the current building for town operations – the former fire hall on 50th Street – is not ideal.
"It was old when it was given up as a fire hall. In order to meet the needs of the operations, (parks and recreation), they need a better building where everybody is together and all the equipment is in the same place as opposed to being spread out in different areas."
That project is included in the town's 10-year capital plan, which is advisory in nature, used to guide council's decision-making by showing what projects are on the horizon.
Chief financial officer Garth Lucas said council will have to balance fiscal reality with the needs of the community.
"The proposed 10-year capital plan has a large number of capital expenditures that are going to have an impact on future budgets," he said. "Are those proposed budgets in the best interests of the town?"
Council and administration are trying to work toward an operating budget that would not require an increase to the tax rate come April, when rates are set.
"I'm very cognizant of the fact that our citizens -- the entire province -- is in an economic downturn and we cannot inflict any more extra costs onto our citizens. We just can't do that," Harper said, citing the provincial carbon tax coming into effect next year.
Administration has already reduced the operating deficit to about $297,000, she said.
Lucas said a zero per cent increase might not be possible. But message received – don't pile on taxpayers.
"The budget is still under discussion and it's council's desire to have definitely a minimal tax increase, zero per cent if possible," he said.
He adds that an open house regarding the budgets will be held on Dec. 5 at the town office, at 7 p.m.
"I think council and administration here really have their work cut out for them to get a capital budget that's going to work for all of the needs and still be realistic on costs." NORM MCINNIS, CAO
