Minnedosa Town Council
May 8, 2017
o:bjectION TO THE PROPOSED FINANCIAL PLAN, TOWN OF MINNEDOSA, for 2017
In the Town of Minnedosa Financial Plan for the year 2017 council allocates $150,000 to the Arena Reserve, which is designated for the building of the Minnedosa Regional Events Centre (MREC). This is a great relief from the $300,000 allocated in past years. However, compared to allocations for Machinery Replacement, $35,000: Fire Equipment, $35,000: Community Centre, $15,000: and Community Convention, $15,000 this seems ridiculously excessive. In addition council cannot find $117,440 for garbage and recycling, which is an essential service for the entire community, and has instituted an extra levy.
Keeping in mind the $1.3 million you have already wasted on MREC, and that you now have $1.4 million in the arena reserve, this allocation is totally unjustified. Inspite of two feasibility studies, which clearly point out the financial risks and potential losses of MREC, council is continuing to allocate an unreasonable amount of taxes towards this project. In the second feasibility study by jHarper & associates, June 2014, it is estimated that the annual operational deficit could be $121,500 (page 31&32). This is very likely the low estimate. This in addition to the debenture cost and arena reserve funding. Harper has two serious warnings to Minnedosa taxpayers. One, there is no demand for arena ice: and two, ONLY Minnedosa taxpayers will be paying for capital and annual operating shortfalls. Of course, you did not mention that in your “Going Forward” article in the Minnedosa Tribune. You were just being ‘economical with the truth’.
Calling taxes ‘fundraising’ is an insult to taxpayers. The $3.5 million debenture is actually $5.74 million when the interest is added in, and that is assuming the interest rate remains at 5.25% for twenty years, and that is highly unlikely. It would appear that you are already budgeting to pay the debenture, but you have not met the conditions set out by the Municipal Board.
You told the Brandon Sun that our present arena is “…all wood construction…”. Really? You obviously have not read or understood the engineer’s report. Please DO NOT build anything! With your knowledge of construction materials and processes anything you build will crumble before the debenture is paid off. The present arena will outlast anything you build. Remember, “there is no wobble in the roof” (quote from a local builder).
It is apparent that Minnedosa Town Council is dominated by a very small minority special interest group to the detriment of the long term financial well being of the entire community: the special interest of a very small group (less than 100), at the expense of all. There are other recreational groups that have a greater number of participants than hockey, but receive no support from taxes.
This financial plan is a dereliction of public duty and fiscal responsibility.