Cost Benefit Analysis

KPMG was hired to complete a Cost/Benefit Analysis to review the financial implications of the City of Fernie expanding their boundaries to include the West Fernie area.  The report was presented at the April 5 RDEK Board meeting and was then forwarded to the City of Fernie.

 The results indicate that a restructure could be a benefit to the City, but this is largely dependent on transitional funding from the Province (not included in the table) and the influence the restructure could have on the City’s population reaching 5,000 which would result in increased policing costs.  (2011 Census City’s population was 4,448 and West Fernie area estimated to be 425 for a total of 4,873)

Based on the huge jump in costs that could be experienced if the City’s population reached 5,000, KPMG was requested to include an addendum to the report that explored a fee for service option with the City.  The fee for service option considers the infrastructure project, but boundary restructure is delayed until such time that the City reaches 5,000 population without West Fernie.  This concept would require the City to reconsider providing sewer and additional water service outside of City boundaries.

The Cost/Benefit Analysis considers the entire proposed West Fernie service area, as presented in October 2011.  With the recent funding announcement, we are currently working to determine what Phase 1 will look like  It will be based in part on discussions with and information from the City of Fernie and the Province.

Click here to view the Cost Benefit Analysis Report