The future of Cochrane’s Aquatic Centre is fast becoming a focal point leading up to this October’s municipal election.
Chatter from both sides of the spectrum – those who say shovels can be in the ground in 2014 and those who say there is no way – has begun to surface, and following the vehement opinion of Cochrane’s current mayor, Truper McBride, that it is unrealistic to believe construction on the pool can commence next year, councillor Jeff Toews feels he needs to set the record straight with regards to costs associated with the project.
“As we get deeper into 2014 we will see where we sit with funds,” declared Toews, saying that under the current format, the Aquatic Centre would ring in at around $35 million. “If we have $35 million, it’s full steam ahead.”
Toews points out that through Municipal Sustainability Initiative (MSI) funding and land sales, the town has committed $19.7 million toward the new pool, and through other levels government, fundraising and hopeful contributions from Rocky View County, an additional $15 million needs to be raised.
The town, however, will not have access to the full $19.7 million until 2016, said Toews, so he believes there may need to be an alternative approach.
“We may need a short term loan,” said Toews. “If it looks like we’re going to fall short, then we have a decision to make.”
For Toews, that decision comes down to three options: downscale the project, delay it, or borrow the money to begin construction right away.
Toews, who is the pool supervisor for the City of Calgary, said he has been told that the town could get a loan to start the project at a three per cent interest rate, a better option, he says, than waiting.
“This decision would be more pragmatic than delaying the project,” he said, “as three per cent interest on our shortfall is much more favourable than the five per cent increase per year on construction costs we would see.”
McBride, on the other hand, contends this point, saying the reason the price tag for the Aquatic Centre has increased has nothing to do with construction costs.
“The costs of the pool have gone up because we had not completed the right level of planning that refined the true costs properly,” said McBride. “Scaring people into debt is irresponsible; we should be saving for our community wants, not spending recklessly to get them.”
McBride questioned Toews’ priorities, asking, “How is it that the same member of council who howled about transit not having a proper business plan is now ready to proceed without one for a project six times larger?”
The mayor believes that focusing on capital dollars is one thing, but that operating dollars is another.
Toews and council do have a plan when it comes to operating costs for the Aquatic Centre – offering lease space to bring in enough money to offset the day-to-day cost to run the pool.
Toews admitted that pools lose money, with Cochrane’s current facility losing nearly $500,000 each year, and the new centre expected to lose $650,000.
“That is way I saw an opportunity with the new pool,” said Toews, referring to the lease space. “Once fully leased, this should cover our day-to-day expenses.”
Toews added that placing an increase in municipal taxes to cover the operating costs for the pool has never been an option council has considered.
“I have and always will look for other ways to generate revenue,” he said.
Toews’ idea is not one that McBride feels strongly about, saying it is inappropriate for government to be involved in such an endeavour.
“This idea is not reflected in any plan,” he said, “and I would again challenge councillor Toews to show the business plan that supports this assertion.”
McBride said the fiscal reality of the pool is not a positive one.
“There is no money right now available at the provincial or federal levels other than the grants we have already allocated to the pool,” said McBride, believing the county may also provide less than what was originally expected – likely $2.2 million rather than the $5 million the town had requested.
“That will leave over $12 million to raise in less than a year to break ground in 2014,” said McBride. “I’m not saying we can’t do it, but I am saying this is unrealistic for 2014 and foolish to raise false expectations just to get votes.”
Toews is confident with his research into this project, saying he has verified the information with the town’s administrative team, but that many variables may still come into play.
“I don’t believe saying that we need to increase taxes or push back other important projects that are also in our 10 Year Financial Plan is reasonable at this point in the project,” said Toews. “Instead of being negative, we need to be positive and work together to find solutions to make this project happen on time and in a cost-effective manner.”
