City Budget Discussions Wrap Up

Most of yesterday, March 18^th's final budget meeting was spent discussing how to use the surplus funds.  As to be expected, there were far more project possibilities than there were funds.  The surplus funds originally available amounted to $1.2 million.  Since the original figure was announced at previous budget meetings, adjustments and decisions to spend funds have been made as follows:

• Fibre optic distribution network design - $9,500
• Wildlife education $15000
• RCMP Building (wheelchair access and requested upgrades
• Fire Services Equipment $21000
• Joseph Creek Bank Stabilisation $50,000
• New Studio Building roof $20,000
• General computer training $20,000
• City Hall Vehicle$30,000
• City Works Program $75,000
• Clock Tower Square Upgrades $150,000
• Portable generator $140,000
• West Entrance Elizabeth Lake project $59,000
• Replace in ground hoist $11,0000
• Public Works Overhead Crane $40,000
• SCADA waste water site $100,000
• Funding for City appointed committees $50,000
• Tourist Park Campground Upgrades $40,000

 It was decided to use the remaining funds for storm sewer upgrades as follows:

·          7^th St NW storm sewer upgrade $75,000

·         1617 Baker St back alley storm sewer upgrade $75,000

·         11st S and Innes Avenue outlet pipe extension and locking manhole cover $68,000

Any remaining funds will be carried over into accumulated surplus for the following year.

All projects were reviewed at this meeting before the final draft goes for final readings at the regular Council Meeting of April 8^th.  There were two feedback letters concerning the City Budget and these were also discussed at this meeting.  Some of the concerns raised included:

-          the line item for an Arts Facility 2014

-          the purchase of a hybrid vehicle

-          replacement of fire trucks

Based on that feedback, a motion was made to retain the $500,000 line item for future Arts Centre funding.  The motion carried with Councillors Pallesen and Scott opposed.  The rationale given for this item is that the economic feedback and gain far outweighs initial capital costs.  In Cranbrook in 2002 an economic impact study revealed that the arts and culture sector accounted for a $24 million dollar GDP impact.  Further information can be found at:

http://docs.cranbrook.ca/downloads/leisure/Cranbrook-Cultural-Plan-for-Arts-and-Heritage.pdf

When compared to other communities in this area and all of BC, Cranbrook has in the past, considerably under funded its arts sector. It is also interesting to note that Western Financial Place runs at an annual $3 million dollar deficit and a one time capital expense of $500,000 for an arts facility is relatively small in comparison.

The question of fire truck upgrade expenses was discussed.  Insurance and liability issues require the City to upgrade its vehicles regularly.

The expense of a hybrid vehicle was also discussed at length but it was pointed out the City will have considerable fuel cost savings and the City’s carbon footprint will be less. Councillor Pallesen also expressed her concern about this expense when she felt a vehicle could be purchased for less.  Councillor Pallesen also questioned whether this purchase was a necessity for staff.   CAO Staudt pointed out that, frequent short trips are made especially by IT staff.