Is Port Moody living above its means?
That question was on the minds of several members of the city’s finance committee Tuesday as they considered its provisional capital budget for the coming year that anticipates projects totalling $22.6 million.
The projects range from replacing some vehicles in the city’s fleet to construction of a new multi-use path along St. Johns Street that’s expected to cost $2.8 million.
“We have a bit of a backlog of projects we’ve been working on over several years,” said Port Moody’s general manager of engineering and operations, Jeff Moi, adding 25 projects, like the repaving of some streets, are from his department.
Tyson Ganske, the city’s manager of financial planning, told the finance committee funding for many of the projects would come from its various reserve funds that would likely be operating at a deficit for the next three years before achieving balance again by the final year of a five-year financial plan.
“There are always more capital projects than there is typically funding,” he said.
That caught the attention of Coun. Hunter Madsen, who questioned whether the city might be overspending, especially given the ongoing economic uncertainties caused by the COVID-19 pandemic.
“I just want to make sure we’re doing everything we can to introduce prudent caution,” he said. “I feel like maybe we’re pretending things are close to back to normal.”
Coun. Diana Dilworth agreed, saying several factors are causing her anxiety.
“Throw in some impacts from COVID and downloads from senior levels of government, and we’re in this very anxious place.”
Dilworth suggested instead of spending, the city might have to look at ways to save money so its reserves can be replenished, including “mothballing” some buildings for periods of time such as closing arenas a month early.
Coun. Steve Milani echoed her concerns.
“It’s not a good position to be in,” he said. “The reserves are overdrawn.”
Paul Rockwood, Port Moody’s general manager of finance and technology, said with about $35 million currently in its reserve funds, the city is in a good position to have those back in balance in five years.
But he agreed, “it doesn’t look like we’re living within our means.”
Rockwood added Port Moody has always operated on a principle of maintaining its “high level of service” to residents, “but we’re going to have to have some discussions about being able to maintain that.”
Those discussions could happen on Dec. 1, when the finance committee will continue its look at the city’s capital budget plan.
