Ponoka maintains capital projects not in jeopardy despite draw on reserves

Town feels money is still available to pay for future projects

Despite having to throw over $1.7 million at the town’s Civic Centre building, Ponoka’s top administrator is confident there is enough funding available for this year’s capital projects.

“Much of the reserve money used to fund the tenant improvements was intended for capital spending,” noted CAO Albert Flootman in an email.

“There were some non-capital, non-restricted reserves used as well, which are also typically used to fund capital projects.”

Any of the 2019 projects — that were to paid out of these reserves — will instead be funded through the town’s Municipal Sustainability Initiative (MSI) money that was initially going to pay for the improvements.

However, the province is currently holding onto that money as a consequence of council’s motion late last year to hold back the education portion of the town’s property taxes.

“Once this funding issue has been resolved, the grant funding in the town’s annual MSI allocation account is expected to flow again and be available for future capital projects,” Flootman stated.

There was no indication if 2019 capital projects are affected by the draw down of the reserve funds or the provincial restrictions on grants.

Council indicated during its meetings on Jan. 22 and Feb. 12 that it won’t budge on the issue. There could be more consequences to the town if the first payment, due March 31, is missed. That could include launching an investigation into the operations of the town, removing the CAO and appointing an administrator or all the way up to dismissing both council and the CAO.

RELATED: Ponoka to use over $1.7 million in reserves to pay for Civic Centre work

READ MORE: Ponoka mayor not backing down on withholding taxes from province

In the meantime, Flootman noted that work is being done to finalize the 2019 budget as well as complete the audit for 2018. That work includes determining the amounts of each reserve account and what to do with any possible budget surplus from last year.

“The process of replenishing town reserves often happens during budget deliberations when end-of-year surpluses are identified and allocated by council.”

It is anticipated that the 2018 audit report as well as the 2019 budget will be presented to council in April.

Typically, MSI funding is allocated annually to municipalities and carries over into following years if it isn’t used right away.


Like us on Facebook and follow us on Twitter


Funding for the interior work on the Civic Centre that drew down various town reserves won’t affect any future capital projects, according to CAO Albert Flootman. File photo

Just Posted

WATCH: Fashion show highlights Cree designers

The fashion show was part of a Samson Cree Nation conference on MMIW

Rimbey RCMP need held identifying vandals

Plus, GPS in stolen vehicle helps locate it and the suspect in Red Deer

Ponoka Chamber to host election forum

All-candidates forum for Lacombe-Ponoka set for March 28 at the Ponoka Legion

Ponoka County $3.6 million surplus used to prepare for future

An unexpected grant carryover along with operational savings in 2018 has provided… Continue reading

St. Michael’s Church commemoration held west of Bashaw

The celebration acknowledged the history of Hungarian settlers in the area

VIDEO: Restaurant robots are already in Canada

Robo Sushi in Toronto has waist-high robots that guide patrons to empty seats

Women of Excellence Awards introduces ‘Women of Excellence in Construction’

Gala will take place June 19th at the Sheraton Red Deer

New Leger polls suggests federal Liberals lagging Conservatives

Overall, 31 per cent of respondents polled said they would vote for Justin Trudeau’s Liberals

Teen girl accused in plot to attack Kamloops school with weapons out on bail

Judge warned the girl she would be back in jail if she threatened to shoot anyone

Oil prices, Alberta election call cloud Stampede chuckwagon auction expectations

The top money bid last year came from Versatile Energy Services, Ltd.

Lacombe hosts 6th Invasive Species Council Conference at LMC

Council looks to protect native ecological environments in Alberta

Pot industry welcomes decreased edibles tax, but unhappy medical tax remains

Taxes can increase the cost of medical cannabis by as much as 25 per cent

‘It has to send a message:’ Broncos families await sentencing for truck driver

Jaskirat Singh Sidhu pleaded guilty to 29 counts of dangerous driving and apologized in court

MPs continue voting marathon as Tories protest shutdown of Wilson-Raybould motion

Multiple MPs have resigned from Trudeau’s Liberal cabinet

Most Read