INNISFAIL – The momentum for a new aquatic centre at a staggering $28.5 million cost is now stronger with general consensus by town council to move forward on a comprehensive consultant’s report that was presented in March.
However, while detailed discussions on the report remain ongoing between administration and town council, the Town of Innisfail has already saved $1,573,208 into a Facility Reserve to kick start the project; enough money to pay the first two full years of a 25-year loan.
Town council is expected to formalize its general consensus, which was achieved at an April 17 Agenda & Priorities meeting, with a motion at a regular council meeting this month.
“To get to all the things we have to decide whether we're going forward or not,” Mayor Jean Barclay told the Albertan. “If you don't do that and if you say. ‘well, I don’t know’, you just keep going around in circles.”
The April 17 meeting featured a detailed council and administration discussion on a 56-page validation report, along with its detailed appendices, that was presented to town council on March 20 by lead project consultant Group2 Architecture.
The council discussion went over funding, naming rights, sponsorship and support from other levels of government.
At council’s April 24 regular meeting, Erica Vickers, the town’s director of corporate services, introduced her own report on the town’s fourth -quarter financials, as well as a proposed surplus allocation.
She told council the financials show an overall increase of revenue for 2022 of $122,512.
Her report also said there was an overall decrease of expenses for 2022 of $284,681, and an unspent contingency of $78,842.
“It’s all three of those things, and that's how we get those surplus dollars,” Vickers told the Albertan.
These factors left the town with a total surplus of $486,035, which administration recommended be put in the Facility Reserve to help fund the future aquatic center.
The motion was passed unanimously by council.
Vickers said the new $486,035 in surplus monies will put the facility reserve at $1,573,208.
While there is now general consensus from council to move forward with the aquatic centre project, to do so the town could be responsible for $12 million of the total $28.5 million cost, with the rest paid for by grants from senior levels of government, sponsorships and fundraising.
Vickers said the town could get a 25-year loan for the $12 million cost, which she estimated could leave the town with annual payments of about $832,700; an amount based on interest rates as of April 17, and is subject to change.
“So, we are almost at two full years of payments built up, which is nice,” said Vickers, adding the $1,573,208 now in the Facility Reserve is just the start. “There will be more money going in at the end of this year.”
She said the town is also making a plan for “gradual tax increases” to build up loan payments that need to be in the town’s budget.
“We don't want to do one big tax increase in a year, like going up seven per cent. We don’t want to do that,” said Vickers. So, we kind of have it broken out where I think we're able to get it down to a one and a half per cent tax increase for the next three years.
“And then by 2026 we'll have enough in our budget to make that full payment in a year,” she added. “So yes, we'll still have to pull money out of reserves but at least we'll have it built into our budget that we can afford to make those payments.”
