The frame of the new arenas and pool building has started to take shape. (Susan McNeil/paNOW Staff)

By Susan McNeil

Borrowing for arenas and pool

Councillors sound off after one vote delays pool borrowing bylaw

Mar 28, 2023 | 5:00 PM

One vote has delayed the Prince Albert’s $30 million pool and arena borrowing bylaw and will not change the outcome but could end up costing the city some money, frustrated councillors said at Monday’s meeting.

Coun. Don Cody said that the no vote was pointless and if interest rates go up in the very near future, it could cost significant amounts of money.

“It’s terrible to think that we’re going to spend this kind of money when it’s absolutely not necessary,” Cody said. “There’s obviously someone doesn’t understand what’s going on here with regards to finance of this community and it’s about time we do.”

The city was offered a borrowing rate of 4.3 per cent from a municipal lending body, but needed to pass four motions in one meeting to bypass delays that are built into municipal borrowing laws.

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Staff also looked at rates from banks, but all were higher than what was offered by the Municipal Services Corp.

After passing first and second reading, it takes a unanimous third motion to give leave to go to third reading. The third reading passes by simple majority.

Not having a unanimous vote does not mean the borrowing won’t happen. Mayor Greg Dionne immediately called a special council meeting for 4 p.m. on Wednesday, at which point third reading is almost certain to pass.

Councillors worried that the delay could mean the loss of the lower borrowing rate and, if the rate were to increase even one per cent, mean an extra $300,000 in cost every year to the city. That would add up to over $10 million over the 35-year life span of the loan – failing a change in the rate.

“One vote could cost this city hundreds of thousands of dollars,” said Coun. Blake Edwards. “I just cannot believe it. Grant the leave so we can move forward and get a lower interest rate.”

Coun. Charlene Miller was the lone vote opposing and told paNOW that while she supports the idea of the arenas and pool, it should be designed to be more environmentally friendly.

“It’s not that I don’t like them. We do need them. I’ve always said that we do need an aquatic centre. I wish we would do one project at a time so we can get it right,” she said.

She said as it stands, the only green initiatives in the building now under construction are the windows and insulation.

“I think we left money on the table that we could have applied for,” Miller said.

Miller is not the only councillor who consistently votes against motions on pool and arena development. She is normally joined by both councillors Tony Head and Terra Lennox-Zepp in opposition.

Lennox-Zepp, however, did stand to say that while she continues to oppose some aspects of the project, she would support the motion to give leave to go to third reading.

“I have to stand by those values that I espoused. I still wish to stand by them. I am voting no here, these are large sums of money, a large financial commitment but that doesn’t mean people don’t want a new pool and people don’t want the new arenas,” she said.

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susan.mcneil@pattisonmedia.com