Their new swimming pool has swamped Armstrong-Spallumcheen’s parks and recreation budget. Both municipal councils heard Thursday that the year-to-date parks and recreation operating expenditures were $131,579 over budget projections, mainly because of the construction of the new aquatic centre, which opened this summer. Add to that a $25,000 shortfall in revenues and the communities are on the hook for more than $156,000. “I’m very disappointed in the results,” said Dave Brew, a Spallumcheen councillor and parks and recreation commission member. “The commission sat in on all of this. We’re as responsible as anybody.” Byron Sayer, parks and recreation commission manager explained that the pool construction was the major factor in the overrun. “Wages were the biggest component,” said Sayer, who started his new job in August. “Interior Health requirements for on-site first aid, and additional lifeguards compounded on having staff performing on construction and cleaning duties.”
The total capital cost of the pool was $2.5 million. Mark Faubert, vice-president of Canlan Ice Sports, which manages Armstrong-Spallumcheen Parks and Recreation, explained that one account for the pool was set up and approved by the commission, and all capital and operating costs came out of that account. According to Faubert, invoices filed late during the construction process helped lead to the added expenditures. “They’re all legitimate invoices, it’s just the timing of them,” said Faubert, who also took blame for the high numbers presented to the councils. “As the invoices came in, they started to mount up and we began to realize there would be a challenge in meeting cash flows and payroll.” Besides the pool, there is a $55,000 cost overrun on the Nor-Val Sports Centre due to wages, a retirement package and an emergency need to rebuild a compressor in the ice plant. Wages and utilities helped result in an $18,000 overrun at the Hassen Arena, and the commission spent $13,000 on full-colour recreation guides this year. The commission had hoped to bring in more revenue at Nor-Val but, to date, are more than $29,000 short of its goal. Sayer said minor hockey has been cancelling ice on a regular basis – 56.5 hours worth $4,000 so far – and there have been no house or three-on-three hockey tournaments as budgeted. Both Faubert and Armstrong Mayor Chris Pieper admitted revenue projections at the arena were over-zealous. “I think we had over-ambitious expectations on what we could do as far as selling ice in the arena and were overly optimistic on what our expenses would be,” said Pieper. Ryan Nitchie, an Armstrong councillor, would like to see parks and recreation’s budget increased at the beginning of the year, during budget deliberations, and not at the end. Members of both Spallumcheen and Armstrong councils must now determine how to fund the shortfall before the end of the year.
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Politicians in Armstrong and Spallumcheen are in an unenviable situation as they try and resolve a financial crisis. A joint council meeting Thursday revealed year-to-date parks and recreation operating expenditures are $131,579 over budget projections, and revenue has dropped $25,000. In terms of the budget going out the window, there were higher wages and invoices not paid on time during construction of the aquatic centre. How did the process fall apart? Some groups have opted not to book space at Nor-Val Sports Centre, but it’s obvious that initial revenue calculations were completely unrealistic. “The commission sat in on all of this. We’re as responsible as anybody,” said Dave Brew, a parks and recreation commission member. There’s no question the elected officials and administrators need to admit the finances went off course on their watch. But ultimately it will be taxpayers left holding the bag. Both municipal councils must now determine how to deal with the $156,000 needed to balance the books, and there are very few options. One could see residential taxes hiked in 2011, but that will be onerous on residents and businesses struggling with the recession. Money could be taken out of reserves, but eventually those funds will need to be replaced for other projects, and that will also translate into higher taxes. The other option is gutting services but that option would prove to be the least popular of all. Unfortunately, tough decisions can’t be avoided and that means residents will pay the price for the bureaucracy going off-course.
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