City council approved an additional $1.3 million in funding for Mount Sima Monday evening, in an effort to support the hill's continuing development as a year-round recreational facility.

The local ski hill fell short of its expected budget this year.

"Because of downtime on the lift last season and exclusive winter usage, there was a defect, then there was funding that was predicted to be raised for the lift which didn't materialize,” said Rob Fenderick, the city's director of administrative services.

"But what it amounts to is investing into the community and in business and infrastructure at Mount Sima.”

The funding will be provided from the city's asphalt overlay budget.

That work will now be covered by the federal government's Building Canada fund.

This arrangement has allowed the city to flow the additional $1.3 million to the Great Northern Ski Society, which operates Mount Sima. The city-wide asphalt program is being moved up to this year from 2014.

It is the second major funding transfer to Mount Sima in the last two years.

In June 2011, the ski society received $1.6 million to help purchase its new Doppelmayr chairlift.

The ski society believes the continuing investment will start to pay off within three years.

"It's pretty clear that in year three, the Mount Sima operation will break even, in fact a little better than even if we play our cards well,” said society

president Craig Hougen.

"That is really the beginning of the end of funding that Mount Sima will be requiring from the city. In year three, we will break even and start contributing some dollars into our own long-term infrastructure investment.”

The ski society said it also plans to employ about 20 people in its year-round operations, which include the WildPlay facility and North America's longest free-fall zip line.

"If we have only a winter operation, we lose money, and it's no secret that ski facilities lose money, but we'll also lose all of our staff in the summer so there is a complete lack of continuity because people leave and we have to re-staff and start again,” said Hougen.

"Having a year-round staff will make that business much easier to run.”

According to city planners, it's an investment in lifestyle and recreation.

"There is no question that it is a community asset,” said Fenderick. "The park is creating an environment where people want to live, work and play.”

The funding decision went before council at its regular meeting last night.

There had been no public mention of the plan until officials held a media briefing Monday afternoon.

"This is a great opportunity to keep the park open beyond just the winter time,” Coun. Kirk Cameron told last night's council meeting.

"It's really an investment in lifestyle. It is an incredible opportunity for people who want to come to Whitehorse to see what we have to offer.”

Other councillors were more apprehensive.

"If we don't support Mount Sima, we're going to own it,” said Coun. Dave Austin, noting that without funding, the operation may not succeed and would then rest solely on the shoulders of the city.

Coun. Dave Stockdale doesn't believe the operation will be self-sustaining by 2015.

"Three years from now, I believe we'll be asked for another half-million in funding,” he said. "So I will support this, but I will be holding my nose as I do it.”

The only dissenting vote came from Coun. Betty Irwin, who also voted against the previous funding increase last spring.

Referencing an earlier council proclamation in support of Hunger Awareness Week, Irwin stated that extra money for Mount Sima should be spent on projects of more social relevance to Whitehorse residents.

"I am in the process of painting a target on my back,” she said. "But what's in it for the city?

"I can't, in all conscience, conceive to loan, borrow, or otherwise spend any more money to this project ... certainly not $1.3 million to a barely-functioning non-profit, while we are being asked to be aware of hunger for a week.”

Coun. Ranj Pilai agreed that the money could ideally be spent elsewhere, but said it would be unlikely.

He also noted that the Sima funds could also set a precedent for land transfer to private sector development.

"Do we come up with a solution that is sustainable, or do we we come up with a Band-Aid solution?” he asked. "If we send the money to the non-profit and they can create something sustainable, then I say do it.”

City council supported the budget amendment with a final vote of 6-1.

City administration will bring forward budget adjustments in May.