Home » City’s financial position in pretty good shape: CFO

Posted: July 23, 2019

City’s financial position in pretty good shape: CFO

Kimberley City Council Report

By Nowell Berg

On July 22, City of Kimberley council held its regular bi-monthly meeting.

Councillors Kyle Dalum, Kent Goodwin, Nigel Kitto, Jason McBain, Darryl Oakley and Sandra Roberts were present along with Mayor Don McCormick.

SunMine

The April to June (Q2) electricity generation numbers at SunMine (pictured above) were presented to council by chief administrative officer Scott Sommerville. His report noted the Q2 revenue of $52,692 was “95.8% of projected.”

Monthly electricity generation statistics:

April Revenue – $18,035 on 169.8 MWh

May Revenue – $16,696 on 182.07 MWh

June Revenue – $17,961 on 200.41 MWh

Coun. Oakley asked if there were any “cost surprises that are starting to creep into this project?”

Sommerville answered, “Not right now, nothing major.” However, he added, “There are a few trackers that need to be repaired.”

Coun. McBain asked, “Is that the condensation issue?”

Sommerville, replied “yes,” then elaborated, “We have an in-house fix for them. It’s a lot cheaper than sending them back to Ontario to be refurbished.”

Weed control will also be undertaken at the SunMine site this summer.

When asked about the SunMine sale, Sommerville said, “It’s still moving along.”

The Mayor added, “It’s in process. Nothing leads us to believe it won’t happen. Unfortunately, we can’t say more than that as all discussions are in-camera [non-public meetings].”

Financial Update

Jim Hendricks

Chief financial officer Jim Hendricks presented council with a mid-year financial update. The report and presentation are designed to “increase transparency to council and the general public” about the city’s financial performance.

In summing up the city’s financial position, Hendrick’s said, “There is really nothing in there at this point that causes me any concern. We’re in pretty good shape.”

With the construction season in full swing, Hendricks said the financial numbers for capital projects “will bump up a bit.”

The city has budgeted $6.5 million for capital projects that include $2.1 million for sewer upgrades, just over $700,000 for the water system and almost $2.4 million for general operations. In the latter category, the three largest dollar value projects: 4th Ave – Boundary to Trail (Rebuild and Paving),  4th Ave – Boundary to Trail (Storm drains) and replacement of the 1980 motor Grader.

In response to the financial update, Mayor McCormick said, “If you take a look at the total number of projects, both capital and non-capital, we’ve got an awful lot going on.”

BA Blacktop Secures Paving Contract

4th Avenue construction. Chris Newel Photo

Council awarded the paving contract for 4th Avenue, Boundary St. to Trail St., to BA Blacktop of Cranbrook. It is valued at $1.094 million.

Work on the roadway is currently underway.  Before paving starts, the road base will be rebuilt, all remaining asphalt removed and the curbs and gutters installed. According to Nikolaas Morissette, Manager of Operations – Roads, “Laying down asphalt will not take place until late August.”

He added the work will be done in two phases. The bottom section, Creston St. Laneway to Boundary St., is expected to be completed by September 3. The upper section, Creston St. Laneway to Trail St., targeted for early October completion.

The 4th Avenue work includes sewer main crossings ($150,000), storm drain upgrades ($190,000) and water main replacement ($240,000). These costs are in addition to the paving and road work costs.

Council also approved the purchase of a new motor grader. The $437,259.00 machine will be purchased from Brandt Tractor, Cranbrook. The grader is on order. The old motor grader is of 1980 vintage.

Tyee Log and Timber was awarded a contract ($34,570) to supply and install accessible doors at the Civic Centre. This work should be completed prior to the upcoming ice season. Vimar Equipment, Vancouver,  received a contract ($140,000) to supply new ice re-surfacer equipment which is on order.

Kimberley city council meets twice monthly starting at 7 p.m., open to the public.

The next regularly scheduled council meeting: August 12.

e-KNOW


Article Share
Author: