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The RMWB enters 2024 in strong shape financially. The municipality has no debt. Administration told council that economic uncertainty was considered in 2024 projections, but the RMWB needs to prepare for belt tightening and long-term stability.

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The RMWB is expected to generate more than $611.5 million in revenue. Operating expenses are projected to be $473.3 million. However, operating expenses exceed projected 2024 tax revenue of $460.4 million.

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Laurie Farquharson, the RMWB’s chief financial officer, told council there will be monthly meetings with auditors and CAO Henry Hunter regarding how the RMWB spends its money. Financially there will be “a lot more rigour and visibility” on expenses, she said. The RMWB has already cut $25 million from the operating budget, she said. Hunter added there will be a “deep dive” into studying efficiency across the RMWB in February.

Farquharson and Hunter were responding to Councillor Lance Bussieres, who worried about the RMWB’s financial trends.

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“I don’t think the organization is as healthy as some think it is,” he said. “I look at the spend over the last couple of years and it’s increased and our revenues have dropped 25 per cent.”

Rural recreation facilities underperforming

Council started budget talks with approving more than $16.9 million for the Regional Recreation Corporation of Wood Buffalo (RRC). The funding supports the 2024 operations for the organization, which manages MacDonald Island Park and other recreation centres across the municipality. However, the RRC’s leadership mentioned supporting the rural facilities is becoming challenging.

The $16.9 million is a slight increase from the $16.5 million approved last year. The ask is a drop from the $19.5 million approved in 2022. The 2024 funding is 45 per cent of total expenses. The 2024 funding request is because of facility expenses, wages, utilities and insurance. The RRC generated $20.7 million in revenue and expenses were $37.6 million.

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This year’s increase is offset by more business returning to MacDonald Island Park’s facilities. Space for events is getting used more often and there are few office spaces available for rent. During a presentation to council, RRC CEO Graig Walsh warned of an “operating deficit” for the rural facilities.

The buildings are bigger than what the population of the communities need, he said. There are also few businesses and organizations willing to lease space in the rural facilities. The Anzac Recreation Centre, for instance, lost a major office space client.

“The rural facilities are a little bit trickier just based on the size of the facilities, the population of the communities, the number of businesses and groups looking to lease space,” said Walsh.

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“We have requested proposals multiple times on vacant spaces we have at those facilities. The demand isn’t where it would need to be based on the supply that we have available. We’ll continue to to look for partners who are interested in spaces and those facilities, but I think it’s just the nature of the communities.”

Library use up, despite fiscal challenges

Another $4.3 million was approved for the Wood Buffalo Regional Library (WBRL). This is a 1.89 per cent increase from last year to account for wages and expenses. WBRL’s leadership told council they have also had to be mindful of their spending. Programming and rural outreach has been cut back to manage finances.

The library is seeing more use, though. The library checked out 284,000 items in 2019. As of November, there have been 340,000 items checked out in 2023.

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Councillor Funky Banjoko asked how late fees could impact revenue. WBRL board chair Corinna Pirie said this revenue is minimal. Late fees brought in only about $30,000 annually. WBRL leaders also felt fees for late books or membership renewals punished low-income users. If an item is not returned, a bill for reimbursing the item in full will be sent.

“The cost of everything is rising. The library is not immune to this. our expenses are increasing. However, we are also seeing an increase in the utilization of our basic services,” said Pirie.

Council also approved more than $4.1 million for the Municipal Facility Operating Grant. This subsidizes non-profits that operate and maintain municipal-owned recreation facilities. Funding will go towards the Ptarmigan Nordic Ski Club, YMCA of Northern Alberta, Fort McMurray Minor Baseball Association, Fort McMurray Minor Hockey, Northern Alberta Athletic Association and Vista Ridge Recreational Association.

Fort McMurray Wood Buffalo Economic Development and Tourism (FMWBEDT) was given a $4.39 million budget, a slight drop of $9,000 from last year. Only Councillor Keith McGrath opposed funding the group.

Council ended the day by reviewing operating budgets for municipal departments. This section is expected to be finished tomorrow.

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