Snow-making costs pile high at White Hills in Clarenville

White Hills Ski Resort is burning throughits taxpayer-funded line of credit faster this season and will likely finish the year in the red, but one town councillor says that's no reason to panic.

"The snow has been challenging and the weather has been challenging. So the costs of making snow continue because we're not gettingany natural," said Paul Tilley, who is also chair of the Clarenville finance committee.

The ski hill is owned by the town of Clarenville but it's operated by theAlpine Development Alliance Corporation, a non-profit organization.

Every year, it receives a line of a credit in the fallup to $75,000 which is drawn in increments of $25,000 andsubject to council approval, for transparency's sake, according to Tilley.

The latestinstallmentwas approved at the Feb. 13 council meeting.

"So there is nothing really unusual this year other than the fact that they're drawing down that last $25,000 [now]... and that amount is being used largely to get the snow conditions up to a standard that certainly people can enjoy," said Tilley.

"I would imagine that at the end of this year we are going to be looking at a deficit situation."

He said the line of credit has been paid every year since 2000, which is when the town took ownershipand fronting the cash is crucial when it comes to the ski industry.

"Everything is front-end loaded, in terms of setting the hillup and getting snow made and these sorts of things," he said.

Tilley said thesnow-making costs continued to rack up even after Christmas.

'This is one of the humps'

While the financial picture may be bleaker compared to other years, Tilleysaid it's not all doom and gloom.

"In other years, the hill has done very well so as Isay, its part of the natural cycle. So i think if we can moderate the loss this year, we'll be doing really well," Tilley said.

He said the success of the attraction can't just be measured in dollars and cents.

"Theresort, in terms of what it does for the community, that's $750,000 to$900,000 in revenues every year, 20,000 skier visits, school groups, 30 people working up there," Tilley said.

"I think we have to take a longer view on it. This is one of the humps that we have to get over and we are committed to getting over this hump."