ATHABASCA — The Athabasca Regional Multiplex Society (ARMS) passed its 2024 capital budget after directors identified necessary amendments to the project priority list and changes to the capital requisition process.
During the Nov. 20 board meeting, ARMS directors voted 6-0 to adopt the 2024 capital budget as amended, pending the approval of the requested requisition amount of $95,000 from both the Town of Athabasca and Athabasca County.
“It’s really difficult trying to ensure that the facility is run as fiscally responsible as we can,” said ARMS chair Ashtin Anderson in a Nov. 24 follow-up interview. “Taxpayer dollars are going to fund the operation, but we still want to be able to provide quality service to our community.”
A motion to request the member municipalities each release the $251,558.20 previously allocated in 2023 for the solar photovoltaic capital project to ARMS to be deposited in a restricted reserve was also carried unanimously.
Directors passed a third motion to direct administration to present an asset management plan to the board by August 2024 in order to inform directors’ discussions around capital project priority in future years with another vote of 6-0.
Project priority
The draft 2024 capital budget was initially presented to ARMS directors during the Oct. 16 budget meeting, alongside the draft operating budget. Directors approved the draft operating budget but opted to revisit the capital budget to make changes to the project priority list.
Total capital project costs in the Oct. 16 draft capital budget were slated at $875,680.92, without potential rebates or funding from grant opportunities. The ask from each partner municipality clocked in at $437,840.46 for the year and included 24 priority capital projects.
The total capital project costs in the budget presented at the Nov. 20 meeting was reduced to $385,721.38, with an ask of $192,860.69 from both the town and county. The project list was also pared down to 14, after countertop replacements, an inverted leg press, pool inflatables, and various other fitness and sports equipment were removed.
During the meeting, directors reduced the project list even further: fieldhouse floor repairs, duct cleaning, fire system repairs, a curling rink dehumidification unit, public address system amplifier repair costs, and theatre curtains were listed as priority for the upcoming fiscal year.
Installation of wheelchair accessible doors, if grant funding can cover the costs, was included as a must for 2024. $6,500 will also be made available for roof repairs if funding from the federal Green and Inclusive Community Buildings (GICB) grant for the solar photovoltaic project is approved.
The grant application was submitted through the county in February, and Multiplex manager Rhonda Alix told directors she hopes to receive approval in December, although no set timeline for project approval has been made available.
Capital concerns
Changes to the priority list further reduced the capital ask from both member municipalities. The capital requisition amounts shrunk by almost $100,000 — from the revised total of $192,860.69 from each municipality, down to asks of $95,000 each.
Although the total requisitions were significantly reduced, both the county and the town will receive much bigger bills from ARMS.
“It’s been our practice to invoice the town and the county for (capital projects) as they happen. What would it take to change that practice, and to invoice for them when the funds are approved?” asked Anderson.
The question was raised in relation to funds for the solar photovoltaic project, a project approved in ARMS’ 2023 capital budget. The town and the county were asked to contribute a combined total of more than half a million dollars for the project cost, requisitions which were passed in each municipality’s 2023 budget.
Directors Balay and Pacholok, along with town CAO Rachel Ramey, noted the money for the solar project was approved on the condition ARMS received funding through the GICB grant.
“It makes municipal budgeting really hard if you plan to spend that large of a sum, and then you have to plan to spend it again next year,” said Anderson Nov. 24. She said ARMS hopes to receive the $251,558.20 from the county and the town before Dec. 31, with the funds coming from the 2023 budgets.
Balay expressed hesitation over forming a restricted reserve for the funds, and said if the project doesn’t receive GCIB funding, the money should not be available for other project use at ARMS discretion.
Pacholok voiced concern about the magnitude of ARMS asks. “After doing our potential budgeting for 24, we’re very concerned, because we don’t have the money for what’s being proposed,” said Pacholok.
“As a board member, I find that extremely concerning,” said Anderson.
ARMS capital budget requisitions and the release of the previously allocated $251,558.20 will be before both town and county councils in December as part of each municipalities budget deliberations.
“I would prefer that we keep the $251,000 in a designated reserve in the towns name, because that way we’re still collecting the interest on it,” said Balay. “We’ll still put it in a designated reserve, that means it’s to be used specifically for that reason, but I think it’s better for the town to remain in control of the funds that way.”
Asset management for better budgeting
During capital budget discussions, long-term asset management was brought up as a necessary tool for responsible fiscal planning.
“As a board, how do we want to set this up so that we know that ARMS is taken care of in the future, and that we are planning better and have the funds there when we need them?” prompted Anderson.
“You have to have a plan … that you can go back to municipalities with that’s credible, predictable, and that they can manage,” said county reeve Brian Hall, who attended the meeting as a member of the public.
While Anderson noted the multiplex does not have an asset management plan in place, facility manager Tim Wolfenberg said staff is in the process of creating one.
“By our next budget season we should have that in place,” Wolfenberg told directors. “Rhonda and I are working with a program to build out all that information which should have a ten-year outlook, and we should be able to provide that information to plan a little bit better over the next decade or so.”
Directors agreed they would like to see a long-term asset management plan by August 2024 to better inform future financial planning and ensure all parties — Athabasca County, the Town of Athabasca, ARMS, and all ratepayers — are considered in decision-making.
“It’s a fantastic facility,” said Anderson Nov. 24. “It’s a huge asset to our community, so we want to make sure that it is operating and available for the community, but of course we have to be mindful of just how many tax dollars we are spending there.”
