By Sheldon Spackman

Grant funding uncertainty lingers over 2019 capital budget

Oct 26, 2018 | 1:44 PM

Sustainability and the environment are said to be areas of focus for the City of Red Deer’s capital budget in 2019.

During a budget briefing to members of city council and the media on Friday, a new 2020-2028 capital plan was unveiled by City Administration, along with a $115.76 million proposed capital budget – $774,000 lower than initially forecast in 2018.

Mayor Tara Veer says what they continue to see in the capital budget is a response to the province’s economic recession.

“Last year’s recommended budget was around the $88 million mark, which was one of the most challenging budgets that we’ve seen in city history,” recalls Veer. “This year’s recommended budget is coming in at $115.7 million. However, most of the work reflects on the utilities-side of the budget, as opposed to the tax-supported side. I think that it’s fair to characterize it predominantly as a rehabilitation budget.”

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On November 19, council will consider the recommended projects in the 2019 capital budget and multi-year projects with start dates in 2019. Council will also have the opportunity to approve the 2020-2028 capital plan in principle, giving administration the ability to plan future projects while providing the flexibility to adjust projects based on community needs and funding sources.

Veer feels there will be two predominant challenges facing council when deliberations begin next month, with uncertainty surrounding provincial and federal grant fundingbeing front and centre.

“Related to that is of course managing community expectations,” states Veer. “There is much work that The City needs to undertake in terms of looking after the infrastructure that we have but there are also long-standing community dreams and visions that the people of our community want to see come-to-pass. But it’s very difficult for council to balance those needs against the substantial infrastructure needs that our community has.”  

The largest capital project proposed for 2019 is a $15.5 million phosphorus recovery and biosolids facility at the Wastewater Treatment Plant, an initiative that would see the installation of new solids handling equipment and phosphorus recovery system to help reduce pollution into the Red Deer River.  

Others include $6.2 million in crown paving and detailed design work for the twinning of Northland Drive (Hwy 11A) between Highway 2 and Gaetz Avenue, with intersection improvements at Taylor Drive and Gaetz Ave for $9.2 million. In addition, grading and earthwork would begin next year for construction of an overpass at the CP Rail crossing on Northland Drive, a cost pegged at $1.9 million.   

A sample of other projects previously approved or are being recommended in the 2019 Capital Budget include $2.6 million in enhancements at the G.H. Dawe Community Centre, $856,000 in city sports field upgrades including at West Park Middle School and Red Deer Regional Airport maintenance and repairs for over $1 million to be cost-shared with Red Deer County.

City Manager Craig Curtis describes the proposed budget as ‘cautious’.

“We have really serious financial challenges down the road and a lot of uncertainty,” warns Curtis. “The recovery from the whole revenue stream with the province is a real challenge and it’s interesting that the province says to us that we need to plan longer-term and in the Municipal Government Act (MGA), there’s a suggestion that we need multi-year capital plans but we don’t have multi-year grant decisions.”

In addition to recovering from recessions and dealing with grant uncertainty, Curtis says what they’ve chosen to do is follow council’s direction and try and present a plan that focuses on protecting the city’s key infrastructure first.

“That’s what we think we really need to do in a time of uncertainty,” states Curtis. “Then council can always branch out on other projects, as long as we look after our basic infrastructure and keep our house in order. We’re focusing on the protection and the rehabilitation of what we have.”

As part of the 2019 capital budget process, Red Deerians have the opportunity to review the proposed budget and provide feedback to council before they consider it.

Feedback can be provided by email to feedback@reddeer.ca or in writing at City Hall, Collicutt Centre, Recreation Centre, Red Deer Public Library Downtown Branch, Timberlands Branch, and G.H. Dawe Branch.

Copies of the budget are available at those locations starting Friday, October 26, and online at www.reddeer.ca/budget starting Wednesday, October 31.

The deadline to submit feedback is 4:30 p.m. on Wednesday, November 14.  

Capital budget review begins at 9:00 a.m. on Monday, November 19 in Council Chambers at City Hall.