Capital budget: Ray Gibbon Drive in, library out

St. Albert's 10-year capital plan is an exercise in prioritization and compromise.

The plan identifies $732 million worth of roads, bridges, buildings, transit and parks related spending through to 2018. The plan provides the building blocks to the three-year capital budget.

Some projects appear in danger of falling into the "window-shopping only" category, thanks to a gaping $476-million shortfall. The city has identified just $255 million in capital funds over the 10 years. 

The plan translates into proposed capital spending of $78 million, $37 million and $21 million in the 2009-11 budget.  Those tallies of course are subject to change when council combs through the details next month.

Here's a few notable projects currently on the funded list for 2009-11.
- Ray Gibbon Drive, stage three: $47.4 million in 2009 *
- Fire station No. 1 rebuild: $10 million
- Riel Park reclamation, phase two: $6.8 million
- Southwest sector arterial (Riel South): $4.9 million in 2009
- New buses: $4.8 million (includes $2.2 million for U-Pass) in 2009, plus $200,000 in 2011

* The city has budgeted the province will cover all but $1.9 million, as per a proposed funding payback deal. 

Here's the list of projects that didn't make it due to lack of funding:
- Downtown civic building: $32 million in 2012-14
- Branch library: $20 million in 2009-11
- Badger lands servicing: $20.5 million over 2010-13
- St. Albert tourism strategy: $10 million over 2009-14

Debt proposed

The funding gap is proving such a challenge, administration recommends borrowing to enhance grant, reserve and tax revenues. Borrowing is proposed to cover $8.5 million for fire station No. 1, and the $1.9 million to complete Ray Gibbon Drive.

After years of debt-adverse practices (aside from Ray Gibbon Drive and Servus Place), could we be headed toward a philosophical shift about borrowing? The jury's still out, although the idea left a poor taste with some council members last weekend.

Mayor Nolan Crouse wants to see more grants put into the plan and not debt. The city still has $33.8 million revenue that has not been earmarked for a project. 

There's another $21 million in provincial grant dollars sitting in budget limbo. The funds  are not currently listed in the 10-year capital plan. They appear on a separate line called "growth development fund." Sounds to me like a plan to kick-start development in the annexed lands.

Council takes a closer look at the capital plan on Nov. 25. Additional time could be set aside in early December, if needed.