Tax hike looms as Regina weighs payment options for new indoor pool

Taxes could be going up in Regina to help pay for the city’s new indoor aquatics centre.

Back in August, Regina’s executive committee directed administration to bring forward options on how to pay for the ballooning costs of the aquatic centre project.

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The project’s costs have risen by over $84 million, jumping from $160.7 million to $245.1 million.

The supplemental report was brought back to Regina’s executive committee on Wednesday, with administration ironing out details around payment options for the pool.

Administration recommended the option with the highest remaining debt, at $139.6 million. Deputy city manager Ted Schisler said it’s the only option that won’t take money away from other capital projects.

“While this is a significant number, the city has the capacity to do so. We are financially healthy with a triple-A credit rating,” Schisler said.

Schisler said administration has looked into several internal funding options, but each has potential negative impacts on other planned projects.

“Removing funds from other projects could result in the project not being completed at all or, more likely, introduce risks to other projects when that funding has been significantly reduced or eliminated, and then efforts to find that funding sometime later,” he said.

Schisler also explained that the other benefit of the option he recommended is that the costs and financial impact of the new facility are more clear and transparent.

“Relative to the other options, it’s less complicated; it’s less risky to other important projects over the planning horizon,” he said.

According to the report, using debt at 4.4 per cent over 30 years, the cost of interest and the principal payment would be roughly $8.5 million per year.

“A 30-year debenture would be the preferred option here,” he said.

“We also have options in the report for a dedicated mill rate to support that fund.”

According to city documents, those mill rates could include a one-time property tax increase of 2.7 per cent (about $65 per household per year) or a smaller 0.5 per cent increase each year over five years (about $12 annually per household).

Schisler pointed to the fact that council recently gave the green light to administration to apply for a debt limit increase of $230 million.

“That would provide for this,” he said. “That application is in its early stages, but it is underway.”

During the meeting, Councillor Lori Bresciani also suggested administration look into options to repair the Lawson Aquatic Centre and look for a new location to build a new pool.

“I do think there is value in looking at all options as we move this forward,” said Bresciani.

“I know that council, I am going to say is very antsy to get this through. We know it will go through. We know we are going to have a pool, 100 per cent.”

But, administration did warn that the project is already approved by the province and federal government for funding, and if the scope of the project is changed, that funding could be pulled.

Meanwhile, Councillor Bob Hawkins gave his full support to the indoor aquatics centre, saying that renovating the Lawson centre and potentially building a new pool at another location comes with too many risks.

“The danger here is that instead of building one first-class, 21st-Century pool that will last for 50 years and meet the 21st-Century needs of our young people, instead of doing that we will somehow get two second-rate pools,” Hawkins said.

Council is expected to make a decision on the new aquatic centre and how to pay for it at its meeting on Wednesday, which is the final scheduled council meeting before November’s municipal election.