The majority of Cochrane’s council members, as well as administration, are not expecting any bumps in the road when it comes to funding for the new pool/curling centre in the face of plunging oil prices.
Councillor Morgan Nagel, however, did raise some concerns going forward, and even suggested that the Town of Cochrane delay its plans to award tender for the new multi-million dollar facility and see what the province’s upcoming budget would look like (expected in mid-March) and for Cochrane council to have the opportunity to review its 10-Year Financial Strategy. Council’s discussion centred around the possibility of the town losing some of its Municipal Sustainability Initiative (MSI) funding, of which, $24 million is being put toward construction of the new aquatic/curling facility.
The town’s senior manager of corporate services, Paige Milner, said $7 million of MSI funding has been confirmed so far, with $3.9 million coming in 2014, leaving $17 million expected to come between 2015-18.
Milner said she does not see any scenario so far that would indicated the town will see a decrease in MSI funding, a sentiment echoed by Mayor Ivan Brooker, who said after speaking with Banff-Cochrane MLA Ron Casey, Casey had not heard of any drop coming in MSI funding, as municipalities largely depend on the program.
Nagel then questioned the town’s growth estimates — currently expected to be six per cent — and asked what position Cochrane would be in with regards to paying back the $19 million loan for the pool if those projections were to slow to around three per cent.
Milner said one of the options would be to extend the time period the town aims to repay the loan from five years to up to 10. Other options to pay back the $19 million loan included utilizing another year of the town’s gas tax, allocating additional MSI funding toward the project, looking at the town using monies from potential land sales and trying for additional fundraising.
“The worst thing we can do is push a panic button,” said councillor Jeff Toews. “These kinds of things happen. We do the best we can and be as cognisant as possible.”
Councillor Ross Watson praised the town’s implementation of its 10-Year Financial Strategy, saying prior to the legislation the town only planned its finances for the coming three years and that council became more proactive with its 10-year strategy.
Nagel cautioned council that the current financial crisis the province was experiencing is much different than previous declines, like the great recession of 2008. He said this time around the cause of the financial decline was directed related to the very product that drives Alberta’s economy, oil and gas, and that it could have a more lasting effect and trickle down to municipalities when it comes to grant funding and projected growth.
The consensus of council, however, was to continue with its plans for 2015 and re-evaluate the situation in April when they look at the 10-Year Financial Strategy.
“We have a lot of options moving forward,” said Brooker. “We can’t just stop everything on fear of moving forward...that would be crazy in my mind.”
