© Times-Herald photo by Lisa Goudy
Mayor Deb Higgins asks a question regarding the capital expenditure fund interest earnings as it relates to the proposed 2013-2017 capital budget estimates during Monday's council meeting.
Council had its first look at the preliminary 2013-2017 capital budget at Monday’s regular meeting. Once again the city is faced with huge infrastructure deficit.
Director of financial services Brian Acker and city manager Garry McKay presented the five-year estimates to council. The majority of council voted to refer the estimates to budget committee for detailed review.
In the proposed report the city will have revenues totaling $89.01 million over five years. The city will have expenses of $89.01 million as well as $13.82 million of uncompleted capital works for a total spending of $102.83 million over five years.
The total spending of $102.83 million excludes the $218.58 million in infrastructure deficit over the next 10 years outlined in the 10-year unfunded capital budget that was also presented to council Monday night.
While there was little discussion on the proposed budget, Mayor Deb Higgins asked a question regarding the capital expenditure fund interest earnings. The earnings are one of the nine funding sources of the general capital reserve and are estimated to bring in approximately $6.42 million over the five years.
“The point is made in the last paragraph (of the report) that we are in a period of historically low interest rates for investment earnings and you give kind of a projection of where the ranges they will be in over the next five years,” said Higgins. “(What) projections do you have for the inflation rate over that same period of time that would go back in to maintain the integrity of the reserve fund?”
For more information, see Tuesday's edition of the Times-Herald.