Decision on central library debt deferred, REAL changes recommended

Those waiting for a new central library project in Regina will need to wait a bit longer to learn how it will be financed.

Regina’s executive committee considered on Wednesday whether to go ahead with debt financing for the Regina Public Library’s new central library project, as well as approve a library mill rate increase of 5.5 per cent.

But instead of giving definitive approval, council members at City Hall voted to defer the decision on whether council should commit the city to acquiring between $92 million and $119 million in debt financing for the Central Library Renewal Project. That debt financing would begin in 2026.

The matter will be voted on at the next council meeting, June 26.

If that vote passes, it means the administration will return to council by the end of the third quarter this fall with a recommendation that will take into consideration the debt financing needs for the library and other capital projects. Those other needs include the indoor aquatics facility debt, scheduled to come back in August, the wastewater treatment plant expansion, and the City of Regina’s overall debt financing capacity.

There was more certainty from administration on how to pay for the central library project. They recommended it be done through a dedicated reserve with the money for that fund coming from the taxpayers.

Administration recommended approving in principle a dedicated library mill rate increase of 5.5 per cent each year for five years, beginning in 2025. The funds would then build up in a reserve account until they can be used for the library project.

Council heard from several delegations who voiced support for a renewed central library. The delegation representing the Regina Public Library made a pitch to councillors calling for approval of both the minimum $92 million in debt financing and the 5.5 per cent mill rate increase.

READ MORE:

• Library board to hold special public meeting on central location
• Masters hopes Hudson’s Bay site will be considered for new central library
• RPL seeking input on other locations for Central Library

Marj Gavigan, chair of the Regina Public Library’s board, said agreeing to a mill rate increase alone isn’t enough.

“We cannot advance to our next steps, the procurement process, unless we get both,” Gavigan said.

“I urge you not to let this project linger any longer. It’s been 15 years.”

She added that while council often makes tough decisions, “this isn’t one of them.”

Barry Lacey, Regina’s deputy city manager, said he was in favor of the 5.5 per cent increase, which he said would provide the library a funding source to pay for the related annual principal and interest payments.

But Lacey expressed concerns about committing to the debt financing at Wednesday’s meeting.

“Administration is concerned there will not be sufficient debt capacity available for the central library renewal project when it is needed, or other projects will not be able to proceed when needed like the wastewater treatment expansion,” he said.

Lacey recommended council direct administration to return by the end of quarter three with a recommendation regarding the debt finance needs for the library and other projects.

The executive committee voted 6-0 in favour of the recommendation from administration. It now goes to council for more discussion and a vote at the meeting next Wednesday.

REAL changes recommended

Also discussed at the meeting was an update on the Regina Exhibition Association Ltd., which has had some well-publicized financial struggles over the past year.

The issues were so serious that there was previously talk at council about dissolving REAL entirely. It now looks like that won’t be happening, but changes are being recommended.

City administration recommended council continue to run REAL as a municipal corporation, and approve a new mandate and refreshed business model for the organization. There was also a recommendation to issue a tender for management of concerts and touring events, and for a permanent board with new board members.

There was also a report presented from consulting firm MNP, which recommended the city take over the sizable debt the organization is facing.

Acting CEO Roberta Engel told executive committee that REAL was on a “path to recovery.”

She said solidifying a permanent board of directors and installing a permanent CEO would be the first steps to stabilizing REAL’s future.

Executive committee accepted the report on REAL, which also now comes back to council for approval at Wednesday’s meeting.