The future site of the planned Aquatics and Arenas Recreation Centre project is on the southeast side of Prince Albert, off Highway 3. (Nigel Maxwell/paNOW Staff)

By Nigel Maxwell

Calling for answers

‘Is it health or hockey?’: advocacy group questions city’s plan to pay for Aquatic and Arenas Recreation Centre

Nov 15, 2022 | 5:00 PM

How much will the Aquatic and Arenas Recreation Centre project actually cost Prince Albert residents, where is the business plan, and could the tens of millions borrowed be better spent elsewhere.

Those are among the latest questions being posed to the city by a group that created a petition calling for a forensic audit of city spending.

According to the most recent numbers crunched by the Prince Albert Business and Residents Advocacy Group (PABRAG), the financial impact upon residents from the project will come in the form of substantial tax increases, new special taxes and increased user fees.

Noting funds funnelled from reserves, and other sources to purchase land and pay architects, project managers and fundraising consultants, group spokesperson Evert Botha said the city won’t be able to promise that taxes won’t go up.

“Whatever money would have been spent on infrastructure for facilities for the city is now committed so anything else is gonna be taxed,” Botha said.

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At a meeting in June, a motion was passed to borrow an extra $30 million from reserves to pay for the increased cost of starting the project.

That was in addition to the original $60 million budget, which includes $24 million in federal funding and another $20 million from the province.

The city was initially responsible for only $16 million of the cost before the $30 million increase brought on by inflation.

The press release from the advocacy group points out the Civic Facilities Reserves has been committed for the next 35 years at $1.5 million plus per year, for a total of $54 million but may increase due to inflation.

“Tell us how you will make sure this facility as its currently being built is not gonna cost the taxpayers an extra dime or an extra penny,” Botha said.

One point made by the group is that the proposed eight per cent special tax levy on all new commercial properties in the development will only realize an additional $470,000 per year by 2030 (using the PADBID formula) should the entire development reach an assessment of $60 million. Botha said no viable business plan has been presented to council or the public.

“Nobody has seen it. Maybe it’s been discussed in camera or at meeting of these aquatic steering committees but we don’t know,” Botha said.

According to previous reporting by the city, the eight per cent levy is in addition to property taxes at the normal rate, all of which will be new money.

The group also explained the special tax levy won’t cover the anticipated combined losses from the Dave Steuart Arena, Kinsmen Arena and Frank Dunn pool, assuming they will be decommissioned or sold off. Those loss are projected to be $890,000 in 2023 (excluding capital budget costs).

The group feels should the City of Prince Albert need to borrow $54 million, interest and capital payments could be running upwards of $4 million, resulting in an average shortfall of $2 million that will have to be levied through taxation (extra $172 per year for each dwelling or $65 per resident).

Noting that the fundraising will contribute to the overall cost, Botha pointed out there’s been no actual plan and also the city is also busy fundraising for the Victoria Hospital Foundation

“Is it health or hockey? You know, that’s the decisions that need to be made,” Botha said.

Over the course of 90 days, roughly 3,700 names need to be collected for the petition to be validated. Noting a number of forms are still out in the community, Botha was unsure what the current tally was, but confirmed there’s been a good response.

“I believe we are on track for where we need to be for the end of November,” he said.

Botha also confirmed again he has no plans to run for the mayor’s chair and is asking for the forensic audit, so residents can look to see if the project is affordable.

paNOW did attempt to contact the city for comment but no one was available by the publishing deadline. Mayor Greg Dionne declined comment.

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nigel.maxwell@pattisonmedia.com

On Twitter: @nigelmaxwell