While cost for the Erin skatepark is $60,000 above original estimates, the town’s finance director says ratepayers will not be forced to make up the funding shortfall.
On July 16, council reviewed finance director Sharon Marshall’s report on cost overruns.
“For many years various groups approached council asking for support to build a skateboarding facility somewhere in Erin,” said Marshall.
In February, 2006 the town coordinated a special public meeting to foster public interest and input.
By 2010, council committed itself to the development of a skate/BMX facility as long as there was strong public commitment to “champion” the development and fundraise for the capital costs.
Under the direction of Bill Dinwoody and the town’s recreation advisory committee, the project began to take shape.
In June 2012, the final site was chosen and the construction contract was awarded. Work started shortly after.
On Aug. 10, 2012 construction was substantially completed and the park was opened for use.
“Unfortunately, excessive noise became an immediate issue of concern to the neighbours,” Marshall reported.
Additional costs for “dampening” equipment and sound barriers were approved. Fencing and landscaping work continued into the fall, and finally completed in the spring of 2012. A grand opening event was held on May 13, 2013.
A sub-committee of the recreation committee was created and members from the community began actively fundraising and seeking donations in January 2011.
The Skatepark Fundraising Committee held fundraising events (ie. Band Jam) and attended local fairs (RACC Fair, Erin Fall Fair). Through the diligent efforts of this committee, donations and events successfully generated $31,219 in proceeds to fund the project.
ln June 2011, town staff submitted applications for grant funding to the Farm Credit Canada under the Agri Spirit program. In November 2011, a $6,100 grant was awarded under this program.
ln October 2011, the town manager, with assistance from Dinwoody, submitted an application for funding to the Ontario Trillium Foundation. Approval for $60,000 Trillium funding was received in March 2012, after the capital budget was prepared and considered.
The 2012 capital budget did not include this grant as a revenue source. A Hydro One “Power Play” grant of $10,000 was received in 2011 and committed to the skatepark project.
The approved 2012 capital budget provided funding from town reserves and reserve funds up to $53,900.
Marshall stated no tax dollars were used to fund the skatepark project.
A council resolution in November 2012 authorized additional funding from cash-in-lieu of parkland reserve funds up to $12,015. With all costs, including the additions, the town transferred $58,785 from reserves and reserve funds to complete the skatepark facility.
Financial impact
Marshall stated the total cost to develop the Erin skatepark facility at Centre 2000 was $166,105. Project expenditures exceeded the original 2012 town capital budget by $66,105. She then stated grant revenues received exceeded the anticipated 2012 capital budget in the amount of $60,000.
As such, she stated the net impact of additional costs minus the extra donations and grant revenues “realized” was only the additional transfer from reserves of $4,885.
Throughout the project, town staff worked with members of the recreation committee to design, plan, fund and complete the skatepark. Public input was encouraged and considered.
Council was kept updated and informed through numerous staff reports at regular council meetings and council/staff working meetings, said Marshall.
“In conclusion, I am pleased to report that the Erin skatepark development was a successful project driven by public interest, supported by community donations, and completed with the financial and staff resources of the Town of Erin,” she said.
She stated all costs were properly authorized by council through the budget process or by special resolutions. Marshall said costs exceeding budget allocations were identified and reported to council in a timely manner and town staff successfully obtained substantial grant funding to reduce the financial impact of additional costs.
