Port Moody’s capital budget for the coming year could be going up by almost 30 per cent.
Last Tuesday, Dec. 5, council gave approval to a provisional expenditure of $23.8 million for projects ranging from road, water and sewer improvements to upgrading the washrooms at the city’s recreation complex. That’s up from last year’s capital budget of $18.3 million.
The proposal includes a one per cent increase to the city’s climate action implementation reserve fund that helps pay for projects meant to help Port Moody achieve its greenhouse gas emission targets, such as replacing the ice plant at the recreation complex.
In a presentation, Tyson Ganske, Port Moody’s deputy chief financial officer, said the city’s capital projects are becoming "increasingly complex" because of environmental assessments and regulation as well as greater engagement with stakeholders. He said the city is also facing higher construction costs due to inflation and challenges with the supply chain.
About 35 per cent of the capital budget will go toward utility projects like improvements and repairs to Port Moody’s water, sewer and drainage networks as well as its major and local roads. The continuing work to reconstruct the Ioco Road corridor will cost $1.75 million.
As well, the city wants to spend $800,000 to upgrade the air conditioning system in the recreation complex’s gymnasium and a plan to renovate its skate shop is back in the budget at a cost of $436,000 after it was put off last year.
Ganske said all the projects will be paid for by money from the city’s various reserve funds and only one — the acquisition of a new vehicle for building officials and the community development department — will have an ongoing impact on Port Moody’s operating budget.
But Coun. Kyla Knowles questioned the appropriateness of some projects like holiday lighting being covered by the city’s new initiatives reserve fund.
She said, over the years, the fund that is renewed with an annual injection of $15,000, has become kind of a catch-all for projects that aren’t necessarily one-offs or might be more appropriate as expenditures in other parts of the budget. She said such items put additional strain on a fund "staff has described as chronically overdrawn."
Knowles said new projects should be "thoroughly considered" before they’re included in the budget, adding staff should review all projects assigned for funding from the new initiatives reserve to determine if they could be paid from another source.
"We need to see what’s truly necessary and what isn’t."
Once that happens, it can be determined whether the annual boost to the reserve is still needed, said Mayor Meghan Lahti.
Next year’s overall budget anticipates an 8.13 per cent increase in property taxes for Port Moody homeowners.
Council will deliberate on the budget beginning in February after residents have had a chance to weigh in through an online survey.
It must be approved by May 15, 2024.
