By Charlene Tebbutt

City to use reserve funds to cover project costs while awaiting Husky money

Nov 14, 2018 | 1:28 PM

The City of Prince Albert will dip into its coffers to cover the cost of three local community enhancement projects while awaiting yearly funding installments from Husky Energy.

City councillors voted Tuesday evening to take $750,000 from its fiscal reserves fund to complete the projects until the full $1 million from the oil giant comes in. The City announced the three projects last week as part of a new partnership with Husky Energy following the 2016 oil spill into the North Saskatchewan River.

Under the new agreement, Husky Energy will give $250,000 to the city in four equal installments, with the final payment coming in 2021. In the meantime, the City will fund the three projects out of its own account, including the final phase of the Rotary Trail, a new spray park to replace the Ella Muzzy Paddling Pool, and a new digital billboard to promote local events and city information.

Councillors spoke in favour of the idea Tuesday, saying the project is a good one for the community. Ward 4 Coun. Don Cody echoed those statements, saying it’s important to have the projects completed.

Cody said he wouldn’t have supported the idea of using reserve funds alone to do the work, but he’s happy to go ahead under the deal with Husky.

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“When you can get a million dollars out of a corporation in appreciation for what we did in helping them, I think it’s very, very worthwhile,” Cody told paNOW. “When you take the money here, on a temporary basis, and get it all back from the Husky, that certainly makes good sense.”

Cody said the work will engage the whole community and create employment opportunities.

“It’ll be great for us,” Cody added. “After all, you couldn’t really expect them to just plunk down the million dollars, they also have budgetary things I’m sure that they have to look at.”

Work on all three projects is expected to get underway in 2019. Any cost overruns will be brought back to council for further consideration.

Charlene.tebbutt@jpbg.ca

On Twitter: @CharleneTebbutt