Lethbridge report says it could save $10M a year if it stops running arena, school buses and makes other changes
By Alberta Newspaper Group on November 22, 2019.
LETHBRIDGE A report recommends that the City of Lethbridge could save up to $10 million per year if it got out of the business of running a major arena, turned school busing over to school boards, and made other operational changes. A fiscal and operational performance review conducted by KPMG was presented Monday to a Lethbridge council committee. It recommends finding a private buyer for the 5,500-seat Enmax Centre, as well as adding parking charges at the facility, as well as combining several departments at city hall to reduce costs, and tightening the guidelines about who qualifies for specialized transit service. City manager Bramwell Strain explained city council should consider the steps in light of recent provincial budget cuts and to bring relief to the city’s taxpayers. “We are the second-highest-taxed jurisdiction in Alberta, and that’s not sustainable” said Strain, who says service levels in the city are quite high and people were generally pleased. “We’re growing faster than our rate of revenue, and the only way to pay for that is to raise taxes. Obviously public sentiment, and your sentiment (on council), is that this is not acceptable.” The report states that the budget at the city currently recovers 85 per cent of its costs at the publicly-owned Enmax Centre, while ownership of such facilities across Canada includes municipal, private or arms-length third parties, such as agricultural or exhibition societies. As well, Lethbridge was found to be the only local government in North America that still provides school transportation, albeit on contract with local school boards. “We do it on a cost-recovery basis, but … there is always hidden cost,” he said. “Do we want to remain in that business? Is it in everyone’s best interests for us to remain? That is a decision now council will have to make.” Administrators say the recommendations will now be open for public comment. The 300-page report tabled this week is the first of two phases in the study commissioned by the city. The second is due in June 2020. 13-12
