The city plans to keep its pennies in the piggy bank in 2013.

That's the theme going into the 2013 capital budget.

The document – outlining $14.3 million in capital spending – was unveiled at Monday night's council meeting, with members passing first reading of the plan.

The spending blueprint marks a decrease of more than $10 million over last year's $25.5-million capital budget with the city opting to lower capital spending so there's more money in reserves if and when it decides to consolidate a number of city facilities.

A $250,000 study would look at whether buildings should be replaced.

"We know that many of our buildings are grossly energy inefficient and require significant and costly renovations and, in the case of our current Municipal Services Building, are incompatible with surrounding land uses and non-compatible with existing zoning rules,” Mayor Dan Curtis said in his four-page budget speech at Monday's meeting.

It was an energy audit down this year on the buildings that determined consolidation could mean a major reduction in how much energy the city uses and resulting savings.

The budget also proposes spending $20,000 to implement the energy plan that was done.

Next year's estimated $250,000 study will determine exactly what could come of consolidating the Municipal Services Building on Fourth Avenue, parks and recreation buildings on Quartz Road and Fourth Avenue, the warehouse and animal pound on Quartz Road, the transit building on Tlingit Street as well as leased spaces.

Those include the Smith House on Third Avenue and warehouse space in the Kulan industrial park.

As Curtis told reporters after Monday's meeting, all those buildings require a separate furnace, furniture and so on.

It also means city employees as well as other individuals who have business to do with the city end up travelling from one end of town to another on a number of city matters that have to be dealt with at different buildings, city manager Stan Westby said during a media briefing Monday afternoon.

It's assumed that consolidation will be more cost-effective than working out of separate buildings.

However, this study will take that from an assumption to a determination, and study what would be needed for a consolidated facility and where it might go, he explained.

A request for proposals on the consolidation study is expected to go out in the new year.

"In its review of these facilities, the city will also take into account the monies that could be obtained by the sale of these city-owned assets and how they may factor into the cost-effectiveness of consolidation,” Curtis said.

As the city looks to its four-year plan, it continues planning to spend less on capital, with a suggested $10.9-million budget in 2014, a low of $3.96 million in 2015, and nearly $4 million in 2016.

Along with bringing forward the following year's capital budget for approval annually, the city typically considers its spending plan for the next four years.

With the main focus on next year, much of the work outside of the study is for the city's basic services – water and sewer, roads, the fire department and equipment to keep all those services running.

More than $1.3 million is identified for the water and sewer system.

That work includes replacing Hillcrest's infrastructure, upgrades to the computer system that monitors water and sewer infrastructure and upgrades to pump-houses and lift stations.

While $30,000 has been identified for the city to continue looking at the possibility of water meters, there is no further funding for it considered in the 2014 to 2017 spending plan.

About $5.4 million is proposed to be spent on roadwork in 2013, including:

• major reconstruction to the northern Range Road area, with funding coming from the federal Building Canada coffers estimated at $2.1 million;

• widening the Robert Campbell Bridge (leading to and from Riverdale) to better accommodate pedestrian and cycling traffic, estimated at $1.7 million;

• preliminary work on reconstructing Sixth Avenue, estimated at $200,000;

• new traffic lights at Lewes Boulevard and Hospital Road, estimated at $500,000;

• new asphalt paths throughout the city to enhance alternative transportation routes, estimated at $300,000; and

• new sidewalk construction in the Centennial Street area of Porter Creek. estimated at $300,000.

To see to the city's needs, more than $1 million is planned to go to new and replacement equipment.

That spending includes $130,000 for one-ton trucks, $100,000 for a new pothole patcher, $450,000 for a new bus and $250,000 for a new loader.

"A further $650,000 investment in equipment will go to the fire department to replace a pumper truck,” Curtis said.

He outlined the more than $1 million aimed at lengthening the life of the city's landfill while still moving toward the goal of having all waste diverted from the landfill by 2040 (with a 50 per cent reduction goal by 2015).

A new landfill cell will be created to the tune of $200,000 while another $195,000 would go to the restoration of the gatehouse area damaged by arson.

Finally, the city is planning to put $680,000 into new compost equipment to help it get to its diversion goals.

"Sustainability, energy management and operational efficiencies represent key elements of the city's long-term strategic plan,” Curtis said.

"These elements will allow the city to live up to its operational commitments and ensure that infrastructure and services that support the lifestyles of our residents will continue to be there now and into the future.”

To live up to those commitments, the city has to make strategic decisions in the interest of its current and future residents, said Curtis, ending his speech.

"They require the principles of foresight, planning, prudence, courage and investment and a thorough examination of how we do business and how we can do it better,” he said. "The 2013 capital budget lives up to these principles.”

With first reading of the capital budget passed, a public input session is set for council's Jan. 14 meeting.

A report on that session will be prepared by staff prior to council voting on second and third readings of the capital budget.

The city's operations and maintenance budget is also expected to come forward in the new year.