Building boosts City of Nelson bottom budget line
By Timothy Schafer
The building boom in Nelson will bolster the bottom line as the city’s chief financial officer delivered his second quarter financial update to council recently.
Colin McClure said protective services spending is up this year — as was budgeted — in order to manage the bubble that arose in the building sector with several projects in the works.
Nelson Commons, the Hall Street project, several John’s Walk new builds and the Shambhala-owned Savoy Hotel renovation have generated some extra time on the books for building inspectors and have driven up costs, he said.
As a result, protective services — which is not just police and fire, but also building inspection — has added a couple of part time building inspectors to keep up with the work demand, he said.
“We have a real big building boom happening this year, which we didn’t before,” he said last week during the city’s committee of the whole meeting, and that’s why protective services is ahead of where it should be, and higher budget wise.
The line item “other income” is also higher than prior years — $2.4 million compared to $1.8 million at this time last year — due to the significant connection and building permit fees related, and budgeted for, from the Nelson Commons project.
In regards to protective services, the city has spent $2.7 million of its $5.7 million total budget, a jump of almost $300,000 ahead of where it was last year.
McClure provided council with an overview of where the city is financially as compared to budget with his second quarter financial update. The city is on target to end the year in line with the budgeted operating revenues, he noted.
Around 33 per cent of the year’s total revenue is left to come into the city coffers ($14.3 million) — and only three per cent of it is taxation owing ($269,295) — the same 33 per cent remaining that the city had to grapple with last year.
However, unconditional grants to the city are higher this year as the province went back to providing the full funding each year ($575,094), “instead of the past practice of the last few years where it front-end loaded the funding in year one and then paid less the following two years,” said McClure in his report.
Nelson Hydro sales are in line with expectations. However, revenues from freshette power generation will be lower than the past few years due to a lower snowpack and dryer spring this year.
“This year’s freshette is a bit lower than average, whereas the past several years they have been much higher than average,” McClure said.
On the expense end of the spectrum, the city has shelled out 46 per cent ($15 million) of its 2015 budget ($32.5 million), and has $17.5 million left to carry it through the remainder of the year.
“Overall the city is managing the expense portion of the operating budget within the expected parameters,” McClure said.
He noted that general government spending was ahead of budget over last year — up by $69,000 — mainly as a result of the city having hired a manager of IT, and the finance department needing additional staffing resources to support the small municipality finance contracts through their 2014 fiscal year ends and 2015-2019 financial plans.
When compared to the prior year, transportation services expenses were less this year, down almost $155,000.
“Two major factors are having lower snow removal expense this year, and the management restructuring where there is one less manager in public works this year,” McClure said.
These savings are being partial offset with all city building expenses now being consolidated under the facility manager accounts, which are housed in transportation services, he added.
Environmental health services is ahead of budget this year when compared to last year, McClure explained about the $14,000 rise, because of the need for additional equipment and staff time to make the change of driving the waste and recycling out to the new transfer station.
Work is currently ongoing for many general capital projects and purchases (roof replacements, fuel tank replacement, vehicle and equipment purchases). McClure noted some significant points in his report, including:
- The Hall Street Project is advancing and the project is approximately 50 per cent complete. Due to the majority of asphalt and concrete work not being progressed in the invoicing to date, the budget appears under spent but is projected to finish on budget.
- Public works crews have been working on the Victoria Street retaining wall project. Work has also been proceeding on the design of the Silica Street bridge replacement which is set to occur in the fall. The capital paving work is to begin in August as most of the work done to date is patching work that has been done for utility digs earlier in the season.
- Hydro projects are proceeding well. The G3 control and monitoring system upgrade has been completed and the submarine cable crossing on the North Shore is mostly complete but is not yet in service.
McClure said the impact of the June 29 storm will be made known in September during the third quarter report, and there will be some comment as to its far-reaching financial effect.
Carshare makes it pitch for city’s share
The successful Kootenay Carshare Cooperative is looking to get the City of Nelson driver’s behind one of its many wheels.
Last week Colleen Doyle from the Cooperative pitched the city on a three-pronged proposal, including a City of Nelson membership, increased presence on the City of Nelson website and a designated cooperative downtown parking spot.
The 300-member non-profit cooperative — established in the city in 2001 — extended its arms to the city and its staff to join, and become the second Kootenay municipality (Kimberley being the first) to enlist.
Doyle asked the city to include a Cooperative presence on its website, as well as a parking spot by the Carshare’s office at 525 Josephine St. that advertises a partnership with the City of Nelson.
“That would really increase our profile and show your support as a member of the Carshare,” said Doyle.
Although council supported the idea of the Carhsare, the question of the cost to the city to become a member and donate the parking spot was deferred to the next regular city meeting.
