City council has taken the first step toward setting capital construction priorities for the next three years, however it already appears the plan has a significant hole after the next phases of the Riel Park redevelopment were left out. That notable omission gives voters an incomplete picture of spending needs for 2011-13 and specifically, for an expensive project this council has directly overseen the last three years.
Council on Tuesday had the opportunity to ask questions about municipal and utility capital spending for 2011-13, before giving administration direction to prepare draft operating and capital budgets, set for full review in November. As it now stands, the 2011-13 budget includes some $49 million in capital construction costs, and another $30 million for utility projects. Projects that made it into the draft plan include the community capital program ($1.5 million), fire station No. 1 upgrades ($6.1 million), Levasseur Road dog park ($100,000) and $7.5 million for arterial roads.
Left out are some $110 million in projects, including sizeable ones like a branch library ($15 million), south park and ride construction ($12.5 million), Servus Credit Union Place fitness centre expansion ($5 million) and all projects related to the downtown area redevelopment plan, DARP, ($10 million over three years). None of those left out should come as a surprise given steep price tags, like the library, at a time when available dollars are extremely limited. Other projects, like DARP initiatives, are too preliminary to add to the draft budget since council has given administration zero direction on what might or might not be a priority for the downtown.
Absent from the funded list are the last phases to remediate and redevelop the former landfill at Riel Park, a $10-million cost between 2011 and 2013. Council reined in spending on Riel Park after the most recent cost overrun in June added $2.3 million to phase two. That came after phase one spiralled to $14.5 million from an initial budget of $9.5 million. Council has asked for a full report on the Riel Park project, now a $33 million endeavour. Unfortunately that report wasn’t prepared in advance of Tuesday’s review and won’t be discussed until later this month. Despite that crucial piece of missing information, several council members, including the mayor, are openly musing about delaying the timeline for the final phases until more money is available.
Normally that would sound sensible given the degree of cost escalation for a project once pegged at $16.7 million. However, delaying the project runs counter to the 2013 deadline to complete the work, handed down by the federal Department of Fisheries and Oceans (DFO). The city has spent the last several years working to comply with the order, however it now appears the deadline might be flexible if the city can show progress with landfill efforts, seemingly a difficult case to make if work suddenly stops.
The future of the former landfill area is clear as mud. When council halted future plans it was a reactionary move, presumably a belated effort to show a commitment to fiscal oversight for this project but in doing so it also sent a message that our public officials don’t understand what is happening. Holding the preliminary capital budget session a full three weeks before the Riel Park report only adds to the confusion, putting out the perception that the project is not on the books just before the election. That could change in November if council decides the project must happen now, a possibility that would represent a post-election about-face.
If council is going to pursue a longer-term project delay, it has a responsibility to clearly communicate its rationale to the public. The landfill is still there and so is the DFO order. The big unknown is what council is going to do next. We’re all waiting for answers.
