The municipality is hedging its bets against unexpected legal costs related to the beleaguered library and cultural centre, which opened in June, nearly three-and-a-half years behind schedule and $1.5 million over budget.
According to the proposed municipal budget for 2017, the municipality would like to transfer $165,000 to an administrative reserve fund to help cover potential legal costs in the event it can鈥檛 reach a negotiated settlement with the architect and contractor responsible for the construction of the Jasper Library and Cultural Centre.
If the budget is approved in the new year, the administrative reserve will have more than $1.1 million,聽 part of which could be used to cover unexpected legal fees.
Mark Fercho, the town鈥檚 chief administrative officer, told council he is currently in negotiations with Delnor, the contractor, and Stantec, the architect and consultant.
鈥淎t this point we鈥檙e still in negotiations with both Delnor and Stantec in closing out the contractions and making prior payment, so to date we have not paid over and above the approved amount budgeted by council,鈥� Fercho said during a council meeting on Dec. 6
鈥淲hat鈥檚 required in terms of the final payouts by all three parties to come to an agreement rather than a litigated agreement, which could drag on for years in courts, is something that I have not completed. I鈥檓 very close with Delnor, but I鈥檓 not close with Stantec.
鈥淚f we can come to a negotiated settlement with all parties than we may come in under (budget), if it goes into years and years in court it could end up way over (budget).鈥�
Legally, the municipality is required to have $2 million in its reserves. If the budget is approved as is, the municipality will have more than $3.3 million in its reserves by the end of the year.
Besides questions about the town鈥檚 reserves, councillors had relatively few questions for administration about next year鈥檚 municipal budget, which proposes increasing municipal taxes by 3.01 per cent.
In previous years council often faced substantially higher tax increases forcing them to find items to cut from the budget. In 2016, for instance, the municipality hiked taxes by 4.55 per cent, down a full percentage point from its original request.
鈥淭his is probably one of the leanest budgets that we鈥檝e had,鈥� said Coun. Rico Damota, who was first elected to council in 2007.
鈥淚 know you鈥檝e done a lot of work before you got here, as opposed to having a Christmas list so I appreciate that. I don鈥檛 want a lack of questions to feel like there isn鈥檛 a lot of attention being put towards this.鈥�
The meeting follows two nights of public deliberations in late November where department managers presented their operating and capital budgets for 2017.
In addition to the proposed tax increase, the 2017 budget also proposes increasing user fees for utilities, such as water, sewage, garbage and recycling.
Another issue brought up during the meeting was a $35,000 proposal to repair an abandoned water line for the bike park.
Coun. Dwain Wacko said he鈥檇 like to see the proposal cut from the operations department鈥檚 capital budget in 2017 and suggested the bike park could use a trailer with a water tank instead.
In early November, the Jasper Park Cycling Association asked council to consider building a seasonal water line to the bike park to help the non-profit organization build and maintain the park.
According to municipal staff, initial estimates indicated it would cost $35,000 to repair an abandoned water line under Connaught Drive in the west end of town.
During the meeting in early November, several councillors questioned whether it was wise to build a water line to the bike park, because the area where the line would be built could be reclaimed by Parks Canada in the event the land is required for residential development.
鈥淚f you recall they had requested water be brought over to the site in the form of running water and our cheapest temporary cost solution was $35,000 in the capital budget, whereas a permanent solution would cost about $120,000 that would remain post-development,鈥� said Fercho.
Included in the cycling association鈥檚 request was another $10,000 in capital funding to install signs, entrance fencing and garbage receptacles as well as $5,000 a year in operating costs to help maintain the park once it鈥檚 built.
Other concerns about the proposed budget included a $10,000 line item for a trip to Hakone, Japan, Jasper鈥檚 sister city.
During the meeting the majority of councillors said they don鈥檛 intend to make the trip next year and therefore it could be cut or reduced for the 2017 budget.
Council unanimously passed the first and second reading for the proposed budget as well as the new rates for utility fees on Dec. 6. Mayor Richard Ireland and Coun. Vonna Arsenault were both absent for the meeting.
Council will make a final decision on this year鈥檚 budget in the new year once year-end numbers are available. In the meantime, council will pass an interim budget on Dec. 20 to ensure administration can continue to operate as normal.
Paul Clarke
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