A new fire hall is expected to open on top of Burnaby Mountain this year, but the city is already raising concerns about sustainable funding for the project, especially from the federal government.
Three years ago, the government announced it would help fund the new fire hall through Western Economic Diversification Canada.
Under the plan, the feds committed to covering 59 per cent of "eligible expenditures" for 15 years up to a maximum of $30 million, according to an update on the grant presented to city council last month.
The report said the funding has been used to cover feasibility studies and conceptual design costs for the fire station as well as firefighter training and salaries and emergency response units for the new facility.
As per the funding agreement, 59 per cent of the Fire Station 8 costs are being covered by Western Economic Diversification Canada.
The city is covering the other 41 per cent through a combination of its gaming reserve, community benefit bonus reserve and statutory capital reserve funds.
But covering the fire hall's operating expenses with the gaming reserve "may not be sustainable," according to the report, and staff plan to discuss alternatives – which could include a tax increase, according to deputy chief administrative officer and chief financial officer Noreen Kassam – during the budget process.
'Taking the brunt'
Before the completion of the Trans Mountain Pipeline expansion, Burnaby fire Chief Chris Bowcock called on the federal and provincial governments to help fund a fire hall on Burnaby Mountain to address the increased risks posed by an expanded tank farm.
A fire at the facility – which is located near the junction of the only two access roads to SFU and UniverCity – would have "immediate life and safety impacts" and require a "very strong" fire department response to protect people, property and parkland outside the tank farm fence from heat, fire and toxic smoke, Bowcock said at a news conference in March 2021.
Bowcock lauded the $30-million funding announcement three years ago, calling it an "excellent example of federal and municipal levels of government working together," according to a July 30, 2021 news release.
But last month, Coun. Alison Gu said the arrangement was unfair given that Burnaby had opposed the Trans Mountain expansion, which tripled the capacity of the tank farm, even before the federal government bought the pipeline.
"On top of the safety risk of storing – and this is how many litres of oil there are at this facility, 883 million litres of highly combustible, toxic oil – the City of Burnaby is also taking the brunt of paying for both the capital and the operating costs of just trying to keep our community safe in response to this project," she said.
Coun. Sav Dhaliwal said he hoped discussions were continuing not just with the federal government but also with the province to ensure Burnaby is "fully compensated.”
But Kassam said only the federal government was currently supporting the project.
Coun. Pietro Calendino asked what had become of a commitment Trans Mountain made years ago to provide capital funding for a fire hall on Burnaby Mountain.
"The city has been in discussions; however, we have not come to any conclusion at this point for any funding provision for the city," Kassam said.
Fire Station 8 is being built on former parkland at University Drive between Nelson Way and Tower Road and is expected to be fully operational in late 2024, according to the city.
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