The Lethbridge and District Exhibition Agri-Food Hub and Trade Centre is staying open for at least another two years, with no additional tax increases next year.
Lethbridge councillors voted in favour of deferring the increase of taxes to instead use contingency funding and surplus money from the current budget to support the $4.1 million annual operating budget for the Lethbridge and District Exhibition. The decision keeps the tax increase for 2025 and 2026 at the previously approved 5.1 per cent.
Councillors Jeff Carlson and Rajko Dodic voted against the tax deferral, with Carlson suggesting they needed to own the cost that came with the decision instead of pushing it to a future date.
Along with the tax deferral and decision to use money from the city’s rainy day fund, council also passed a motion that will refinance the debt from the Agri-food Hub and Trade Centre construction, saving upwards of $15 million over the next 10 years.
The move allowed the city to reduce the $17-million loan LDE is currently paying for their portion of the Agri-food Hub project, and use unused grant funding to pay down the loan by more than $7 million.
In addition, the municipality has also refinanced that loan term from 30 to 10 years, knocking down interest payments substantially.
“Today’s decision secures operational funding for LDE which helps their team move forward with critical sales initiatives to book new events, secure sponsors and grow other revenue streams,” reads a release from the city. “As Council heard from City administration, deferring tax increases will create a tax pressure on the next budget cycle impacting the funding available during deliberations in 2027.”
Discussions about the future of the LDE and the Agri-Food Hub and Trade Centre started last December when what has been described as a dire financial situation was brought to council’s attention. The city stepped in after a special council meeting where they approved emergency resources to stabilize operations for the building including an emergency operating grant of $250,000 and up to $950,000 in contingencies.
As well the city also developed a memorandum of understanding with the Exhibition that was signed in January of this year and included a third-party review of the Exhibition’s planning and finances. At the time of the MOU being signed, council approved $3.8 million in additional funding for the revised 2024 operating budget which projected a shortfall of $6.5 million per year.
The third-party review from Deloitte Canada was presented last month and highlighted issues regarding the strategy and planning, project execution, governance, use of funds and council communication by LDE throughout this project process. City Manager Lloyd Brierley explained after the review was presented that it showed the mismanagement of more than $70 million in public funding from the city, Lethbridge County, the Province of Alberta and the Federal Government.
However, according to city officials since the changes were made last December and new leadership has stepped in at the organization the projected deficit has been cut by $2.4 million.
