City of Prince Albert increases debt limit for recreation centre project
The province has approved the City of Prince Albert’s application to increase its debt borrowing limit.
“We did get notified and it was approved by the governing body,” said Prince Albert Ward Three City Councillor Tony Head.
The City of Prince Albert submitted a Debt Limit Application request to the Saskatchewan Municipal Board Local Government Committee (LGC) this fall to increase its borrowing limits. It was reviewed and approved on November 7 to increase its debt capacity by $75 million to a maximum of $120 million.
The city made the application due to rising costs associated with a new aquatics and arena project, says Head.
“There has been some good feedback from residents. I know there’s been a handful of people who are quite upset about moving forward with the project,” said Head.
The Arenas and Aquatics Recreation Facility was brought forward from public consultation and was proposed to replace two aging rinks, the Kinsmen Arena and Dave Stuart Arenas, said Head
“The Frank Dunn Pool is well over 50 years old. And that’s the only aquatics facility operating,” he said.
“The money is invested already and as you can see there’s movement and construction happening right now so it feels like there is no turning back at this point.”
The city estimated the cost of the Arenas and Aquatic Recreation Facility project at $60 million dollars in 2019, but cost estimates have since increased by 35 percent, according to the city’s website.
Bid prices received in the pre-tender process estimate the total budget for the project at $113.8 million, over $60 million dollars more than initial estimates.
The city received $44 million dollars in government grant funding in 2019 for the project with the federal government contributing $24 million through the Canada Infrastructure Program, the provincial government $19.9 million, and the city responsible for the remainder of the costs.
“The revised funding plan continues to include no increase in property taxes to fund the new facility,” said the Prince Albert city website.
The city says they have instead increased the city borrowing and directed the annual financing payments through the Civic Facilities Reserve. The website also says they plan to target property tax revenue from the businesses in the Yard Development to pay for the project.
The project committee also reduced the cost of the construction plans by modifying the non-functional design elements in June.
PABRAG
The Prince Albert Business and Residents Advocacy Group Inc. (PABRAG) has organized a petition to allow businesses and citizens to speak out against the city taking on more debt, says PABRAG founder and former city councillor Evert Botha.
“Current councillors have objected to the increases in costs but they are bulldozing ahead,” Botha said.
“Whatever shortfall is going to be carried by the taxpayer, an eight per cent levy in the area will never cover the shortfalls.”
Botha has calculated the additional borrowing of $30 million dollars and $54 million. He says at $30 million the levy works out to $64 per year, per dwelling or $25 per resident.
“Because there is no fundraising plan or feasibility study that’s been presented, the city may need to borrow $54 million. Each dwelling or household in the city would be responsible for $172 per year or $65 per resident for 35 years, the length of time that the city facility reserves have been committed,” said Botha.
PABRAG has launched a citizens' petition in accordance with the Cities Act Section 106 to hold a referendum on the city’s borrowing for the project and the $120,000,000 increase in the city’s debt limit.
The group is also gathering signatures to petition the province to conduct a Forensic Financial Audit of the city’s debt and to rescind Motion 2015 passed in June, to increase the city’s debt.
PABRAG has set up locations in the Gateway Mall and in Cornerstone shopping district, 925 - 801 15th Street East to gather signatures.
According to direction from the province, the signatures have to be gathered in person and witnessed.
Botha is also concerned about a proposed arena for the community’s WHL team featured on the billboard outside the Yard District.
He says it seems out of reach given the current interest rates, city debt load, and the need for the community to fundraise to pay for the furnishing needs to complete the Victoria Hospital expansion.
The City of Prince Albert’s Mayor Greg Dionne declined to comment on PABRAG activity.
“I’m a positive person and I’m trying to deliver a good budget to the city so I have no time for side distractions,” said Dionne.
Dionne says no recreation services were cut in the 2023 budget deliberation and the city’s facilities are operating at the same level or have been enhanced in comparison to the year prior.
CTVNews.ca Top Stories
'A step forward': New screening criteria for sperm donors takes effect
Canadians looking to grow their families with the assistance of sperm or egg donations should soon have more options for donors as the federal health agency does away with longstanding restrictions criticized as discriminatory.
Ontario Provincial Police arrest 64 suspects in child sexual exploitation investigation
Ontario Provincial Police say 64 suspects are facing a combined 348 charges in connection with a series of child sexual exploitation investigations that spanned the province.
U.S. presidential candidate RFK Jr. had a brain worm, has recovered, campaign says
Independent U.S. presidential candidate Robert F. Kennedy Jr. had a parasite in his head more than a decade ago, but has fully recovered, his campaign said, after the New York Times reported about the ailment.
Police handcuff man trying to enter Drake's Toronto mansion
Toronto police say a man was taken into custody outside Drake's Bridle Path mansion Wednesday afternoon after he tried to gain access to the residence.
What is whooping cough and should Canadians be concerned as Europe declares outbreak?
There is currently a whooping cough epidemic in Europe, with 10 times as many cases compared to the previous two years. While an outbreak has not been declared nationwide in Canada, whooping cough is regularly detected in the country.
Pfizer agrees to settle more than 10K lawsuits over Zantac cancer risk: Bloomberg News
Pfizer has agreed to settle more than 10,000 lawsuits about cancer risks related to the now discontinued heartburn drug Zantac, Bloomberg News reported on Wednesday, citing people familiar with the deal.
Steve Albini, legendary producer for Nirvana, the Pixies and an alternative rock pioneer, dies at 61
Steve Albini, an alternative rock pioneer and legendary producer who shaped the musical landscape through his work with Nirvana, the Pixies, PJ Harvey and more, has died. He was 61.
Case against ex-Mountie charged with helping China can go ahead in Quebec, judge says
A Quebec court judge has ruled that the case against a former RCMP officer charged with helping China conduct foreign interference can go ahead in the province.
Ippei Mizuhara, ex-interpreter for baseball star Shohei Ohtani, will plead guilty in betting case
The former interpreter for Los Angeles Dodgers star Shohei Ohtani has agreed to plead guilty to bank and tax fraud in a sports betting case in which prosecutors allege he stole nearly US$17 million from the Japanese baseball player to pay off debts, federal prosecutors said Wednesday.