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
Doctors say capital gains tax changes will jeopardize their retirement. Is that true?
The Canadian Medical Association asserts the Liberals' proposed changes to capital gains taxation will put doctors' retirement savings in jeopardy, but some financial experts insist incorporated professionals are not as doomed as they say they are.
Something in the water? Canadian family latest to spot elusive 'Loch Ness Monster'
For centuries, people have wondered what, if anything, might be lurking beneath the surface of Loch Ness in Scotland. When Canadian couple Parry Malm and Shannon Wiseman visited the Scottish highlands earlier this month with their two children, they didn’t expect to become part of the mystery.
Fair in Ontario, flurries in Labrador: Weather systems make for an erratic spring
It's no secret that spring can be a tumultuous time for Canadian weather, and as an unseasonably mild El Nino winter gives way to summer, there's bound to be a few swings in temperature that seem out of the ordinary. From Ontario to the Atlantic, though, this week is about to feel a little erratic.
What do weight loss drugs mean for a diet industry built on eating less and exercising more?
Recent injected drugs like Wegovy and its predecessor, the diabetes medication Ozempic, are reshaping the health and fitness industries.
He replaced Mickey Mantle. Now baseball's oldest living major leaguer is turning 100
The oldest living former major leaguer, Art Schallock turns 100 on Thursday and is being celebrated in the Bay Area and beyond as the milestone approaches.
What a urologist wants you to know about male infertility
When opposite sex couples are trying and failing to get pregnant, the attention often focuses on the woman. That’s not always the case.
'It was instant karma': Viral video captures failed theft attempt in Nanaimo, B.C.
Mounties in Nanaimo, B.C., say two late-night revellers are lucky their allegedly drunken antics weren't reported to police after security cameras captured the men trying to steal a heavy sign from a downtown business.
Bank of Canada officials split on when to start cutting interest rates
Members of the Bank of Canada's governing council were split on how long the central bank should wait before it starts cutting interest rates when they met earlier this month.
Made-in-Newfoundland vodka claims top prize at worldwide competition
A Newfoundland-made vodka has been named one of the world’s best by judges at this year’s World Vodka Awards.