During its last meeting before summer recess, Canmore council voted to financially support the Canmore Community Daycare Society.
The non-profit organization has been operating out of a new municipally-built facility for the past year and increased costs associated with rent, utilities and debt repayment have resulted in the daycare incurring an operational deficit.
“It is clear that the new building has had an impact on the daycare’s financial position,” said Gary Buxton, general manager of municipal infrastructure.
Council agreed to assume responsibility for water and sewer utilities, defer the monthly repayment of a $137,657 loan and suspend payments of $373 a month rent until 2015.
Council voted to accept a $30,000 payment from the daycare, which it received as a provincial grant to pay off some of its debt, and then re-apply the same amount to helping fund a playground.
Councillor Hans Helder took issue with what he said concerned him as being financial slight of hand.
“It seems like slight of hand to take a capital grant intended to reduce debt and turn it into something else,” he said. “I don’t think this is either good accounting practice or good budget practice.”
CCDS Executive Director Cherri Hodgins explained the daycare was successful in getting a $175,000 matching grant, so the society needs to provide $175,000 to build the playground.
Money saved before the move to the Roundhouse was spent to pay for things in the building and Hodgins said the $30,000 will get them further towards the $175,000 goal.
Overall, Helder also expressed concern about the financial situation of the daycare.
“I have a difficult time with this process and I recall having a difficult time with the process when the capital cost of the daycare was increased to $2.2 million from $1.9 million,” he said. “This is just going to tweak that budget and that deficit amount, but not really address it.”
A successful motion proposed by Coun. Joanna McCallum requested the daycare provide a business plan to council during the budget process this winter.
McCallum said other organizations in Canmore the municipality has financially supported report back to council annually and the same thing should be expected of the daycare.
“That kind of accountability is not only required, but expected by the community,” she said.
Conner said the society is working on its business plan and looking at options to deal with the financial shortfall.
“We decided to take the summer to go back over our business plan and to look at (raising fees) as an option,” she said.
Mayor John Borrowman said he supports helping the day care at this time to give them some breathing space while they go through this process.
“There are valid concerns, but I see this as one small way to help the day care society buy a couple of years,” he said. “It is a big task moving into a new centre and redesigning the entire business plan.”
While the daycare also requested the municipality take over landscaping and snow removal, and return the $33,000 it has paid back for the capital loan, it was not recommended by administration.
