(Central Alberta Humane Society)

By Alessia Proietti

increased demand; decreased donations

Central Alberta Humane Society facing financial struggles; defers loan payments for one year

Mar 20, 2024 | 9:50 AM

The Central Alberta Humane Society (CAHS) is facing harsh financial struggles this year.

At their meeting on Monday, Red Deer city council passed first reading to a request made by the Society (4505 77 St.) this February for a loan deferral of one year.

Payments are semi-annual, due each March 31 and October 1, at $31,021.74 each.

The City passed a loan bylaw in 2007 for $1 million toward a new facility for the CAHS, then named the Red Deer District SPCA. Draws on the loan began late 2009 and were completed by early 2010. Originally, the loan was for five years, but was amended to a 25-year loan in 2009. Other amendments made were a one-year loan deferral in 2011 and to reduce the interest rate from 5.058 to 3.6 per cent in 2015.

The principal loan is nearly 50 per cent paid, currently outstanding at $500,681.74. City officials say this provides evidence that the Society is making progress on their loan and is requesting only temporary relief, deeming the request as reasonable.

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The CAHS says they are a local non-profit that is not government funded, with 90 per cent of their funding made through donations, fundraising events, and donations.

The Society provides rescues, care and rehabilitation, educational programs, low income spay and neutering services, emergency boarding, and adoption opportunities. They also supported the City during their Northwest Territories wildfire evacuation program this summer in variety of ways.

Central Alberta Humane Society 2023 impact (Red Deer city council March 18 agenda p. 23)

In a letter by Executive Director Eve Sira, she says 2023 has been a slow year for adoptions, with larger numbers of people abandoning their animals following the pandemic and as economic conditions make cost of living a challenge.

She adds that the Society has been, “significantly affected by our economic downturn and our city’s homelessness and community mental health issues partially caused and escalated over the past three years.”

In 2023, she states they have seen increases of 39 per cent in the pet food bank usage, 40 per cent in demand for their emergency boarding program, 31 per cent in utility costs, and 25 per cent in medical and drug costs; however, a 41 per cent reduction in donations.

“We have had to use our cash reserves to cover operations and we are very close to exhausting these. The steps we have taken to mitigate our expenses has included a revaluation of our supply agreements, a reduction in business hours (1 hour less per day/20 hours less per month), a reduction in staffing hours (164 hours per month), and I have taken a reduction of $4,000 per year in my annual salary,” she writes.

She states a loan deferral would alleviate the immediate financial burden on their business, preserve jobs, and allow them to recover more effectively.

With no interruption of payments, the loan would be fully paid by October 1, 2033. If two payments are deferred, the loan would then be fully paid by October 1, 2034. The City says interest will still accrue annually, even with a payment deferral, which is currently estimated at $17,628.37 for 2024.

To amend the loan bylaw, an amending bylaw is required.

The bylaw will be advertised and brought back for second and third reading at the April 29, 2024 council meeting.

READ: Get lucky this Saturday night at the Lucky Paws Casino fundraiser for the CA Humane Society

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