County aiming to establish more transparency regarding lodge operations, finances

By John Watson Local Journalism Initiative Reporter

Wheatland County council is initiating further discussion with the Wheatland Housing Management Board (WHMB) regarding the finances and public transparency surrounding the Wheatland Lodges. 

Concerns regarding the financial viability of the new lodge project, as well as the continued operation of the existing facility were brought forward during the Feb. 3 council meeting. 

“The lodge will cost approximately $70 million for 120 units, so $583,000 a unit. They (WHMB) are projecting a $10 million upfront cost and $700,000 annual requisitions from the municipal partners to fund the build,” said Coun. Shannon Laprise, reiterating what was learned from the Jan. 6 WHMB meeting at Strathmore town hall. “Wheatland County will be responsible for approximately 65 per cent of that cost, and so then at that point, the WHMB requested letters of support from all municipal partners.”

County council voted to sign the letter of support, thereby aiming to help strengthen the next WHMB application to the province for grant funding, however noted specifically during the vote to omit mention of committed funds to the project.

Coun. Glenn Koester noted the current Wheatland Lodge facility operates on a deficit budget of approximately $300,000 annually, though the exact amount tends to fluctuate. 

Two years ago, a new roof was installed on the lodge, which cost approximately $500,000. That year, the facility was operated on a deficit of $800,000. 

One of the primary ongoing concerns for the existing lodge is with respect to the heating system, which should it require new parts, will be extremely difficult, if not impossible to obtain due to its age.

Council suggested for the WHMB to appear before council to present their updated financials, operations, and projected budgets.

“We don’t know for sure yet, but the requisition structure stays the same and the capital part stays similar as well if we all agree to it,” said Reeve Scott Klassen. “It’s all that how people understand so everybody has the same information and the public has it as well.”

Koester noted the existing lodge currently operates with approximately $900,000 in its administrative reserves and does not have enough of a reserve to tackle a large emergency project such as another roof replacement should that situation arise. 

“If we had to put a roof on the building at $600,000, we would have to come to the municipalities and ask for an advance, or you can go and ask the minister for a loan and they are very stringent,” he explained. 

Council passed a motion to direct administration to invite the WHMB to an information session in order to provide an overview of the operation of the existing lodge, and the proposed new lodge.