The emergency repairs needed to the Sunset Point shoreline could break the bank.
The development and operations standing committee got a more fulsome report on the extent of the storm damage to Sunset Point on during their meeting on Monday night. Director of Parks, Recreation and Culture Dean Collver presented information from Tatham Engineering on the extent of the damage and associated costs.
On Oct. 17 and Nov. 1, extreme weather events caused severe damage to the shoreline in two specific places along Sunset Point: at the Inukshuk stone sculpture and the Heather Pathway lookout. After providing a verbal report to council on Nov. 13, a staff report with more concrete numbers was presented to the committee on Monday, and that report was concerning.
“In speaking with the treasurer today, she requested I make it known to the committee that there’s been a significant impact to the reserves in 2019, which leaves them depleted. That means this project could push our budget into deficit by year-end,” said Collver. “The report will have that added before it’s issued to council.”
The town's reserves have been depleted significantly by the cost of the Collingwood Judicial Inquiry, which, at last report, had reached $4.5 million.
The inquiry is being funded, in part, from the working capital reserve, which is kept around $2.5 million and typically used as contingency funding for urgent, unforeseen expenses, temporary cash shortfalls, unpredictable one-time expenditures, and business continuity in the event of a disaster.
During a discussion at a past council meeting about funding the inquiry, Treasurer Marjory Leonard said the town is required to maintain a balanced budget, so a deficit is the first thing that must be covered by taxpayer dollars in the subsequent year.
Collver said the town’s insurance provider has been contacted regarding the damage to Sunset Point, however, he said it wasn’t likely insurance would cover the damage.
The total cost to repair the shoreline damage comes in at $315,000, with $265,000 going toward repairs and $50,000 to repair the grounds for the summer season next year.
While the town contacted the Ministry of Municipal Affairs and Housing to inquire about the Municipal Disaster Assistance Program for help with the costs, it was informed the issue doesn’t meet the threshold to qualify.
“This seems to be the beginning of an ongoing problem we’re going to continue to be confronted with,” said Mayor Brian Saunderson. “We have to deal with it, otherwise the costs will just continue to go up until we take steps. I think the impacts of not doing anything will be more significant.”
The committee recommended authorizing staff to move forward with emergency repairs related to storm damage and erosion at Sunset Point as recommended in the engineering report, with a project upset limit of $315,000.
The decision will have to be ratified at the next meeting of council.
*With files from Erika Engel
