Town council has agreed with an administration recommendation to spend nearly a quarter of a million dollars for a new plow truck – despite some public concern too much money is being spent during the current recession.
However, council members countered the town is fortunate they are able to take the costly action because of the municipality's envious fiscal position, along with competitive pricing in the market.
“I think there is this perception, ‘Oh you are spending all this money', but the fact is that we have the money to spend without borrowing, without raising taxes and we have accomplished amazing things this year,” said Coun. Patt Churchill, who raised the issue at council's regular meeting on May 24. “Being that I have sat 20 years or more on council I think we have done more this year than I remember ever doing, which in this economic climate is amazing.”
Churchill said she was hearing concerns in the community about the town targeting large amounts of money for big ticket items, like those for the multi-million dollar sewage treatment plant remediation project, as well as council's recent approval to spend $162,000 for a fire truck, and now another $245,445 to replace an aging plow truck.
She pointed out the town was successful in obtaining the maximum $9-million Build Canada grant last year -- a three-way partnership between the town and the provincial and federal governments -- because of its strong financial position which has allowed the municipality to move forward on critically important infrastructure projects.
“The reason we got it is that we had that $3 million sitting there already earmarked when so many other communities walked away and didn't even apply for those grants because they didn't have any of that disposable cash, and we did,” said Churchill. “I don't know if the word has got out there that we have done all these things -- which is quite remarkable -- and we have been able to do them because we have been in such stellar condition financially and we are able to take advantage now of good competitive pricing.”
Council's decision on May 24 to move forward on the $245,445 purchase for a new plow truck will represent a $30,000 savings for the town as $275,000 was originally set aside for the equipment in the approved 2016 capital plan. It is expected the town will receive 25 years of service from the new unit. The existing plow truck, which is more than 15 years old, will be sent to auction.
“There is a lot of people in town who know we are not borrowing money but there are other people that might say in a poor economic period like this we should be spending no money,” noted mayor Brian Spiller. “But we are doing it within a zero per cent tax increase with a balanced budget and with no debt whatsoever and we are still keeping our roadways and our equipment up to date, and doing a great savings.”
Coun. Patt Churchill
"I think there is this perception, 'Oh you are spending all this money', but the fact is that we have the money to spend without borrowing, without raising taxes and we have accomplished amazing things this year."
