Regina's proposed aquatic centre $80 million over budget, city says

The City of Regina announced plans for a new geothermally heated pool complex meant to replace the current Lawson Aquatic Centre.

Those plans however, hit a snag as the project is currently estimated to be over budget by more than $80 million.

“The property tax is going to be hiked so much to pay for this type of thing and it’s something to think about because this debt isn’t free and the cost will ultimately come down to taxpayers,” Gage Haubrick, Prairie Director for the Canadian Taxpayers Federation told CTV News.

The project was approved for $160 million. However, council will have to decide if the budget can be bumped up to $245 million.

The city is looking to increase its debt limit by $230 million, which encompasses the aquatic facility, the geothermal heating facility, the central library renewal project and other unfunded projects.

“However long the city decides they want to pay it back, usually longer-term, means every single year part of your property taxes is not going to be paying for services,” Haubrich added.

“It’s going to be paying for this debt that the city took out this year.”

In a response to CTV News on Tuesday, the city outlined its decision to pursue a debt limit increase.

"An increase in the debt limit provides the City with the flexibility to assess cash flows and borrow funds when required, as such debt will not be acquired all at once but rather will be acquired over time as projects progress and cashflows are needed," the response read.

"Increasing the debt limit will push the City outside its current debt management ratios, as outlined in the Debt Management Policy, for approximately eight years."

An increasing debt load may lead to the City's credit rating being downgraded. If downgraded, the city may potentially pay "marginally" higher interest rates on future borrowing.

According to city administration, the debt service cost will be supported by a funding source.

As an example, a debt of $163.8 million at six per cent over 20 years would result in an annual repayment of $14.3 million. At five per cent over 30 years the repayment would fall to $10.7 million.

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Those who use the facility on a regular basis, however, believe it is worth the investment.

“In this city, we don’t really have a lot to do. The winters are long. In the summer, you can go outside and do stuff but we need more places for kids adults and just everybody to go,” regular patron Rob Lowes argued. “Whether it be to swim or get exercise. I think it is really important to mental health.”

The centre is intended to accommodate athletes competing in several water sports, including swimming, diving and water polo.

Multiple national competitions have been hosted at the Lawson, in addition to the over 170,000 swim visits each year.

It is also notable that this new centre would use geothermal energy for heating which would result in a more energy efficient building.

“I think it’s more than worth it. I mean this facility gets used daily. In fact, if there was more it would get used more,” Brad Browatzee, another Lawson patron, explained.

A total of $128 million has been dedicated to the project from the Governments of Canada, Saskatchewan and the City of Regina as part of the investing in Canada Infrastructure Program.

No concrete decisions have been made regarding this issue. It will be a topic of discussion at the upcoming executive committee meeting on Aug. 14.

If approved, city council will have the final say at a future meeting.