A report on the Seaton recreation and library project presented to Pickering Council yesterday, places an option to raise property taxes to part fund the estimated $266,365,000 (net HST) project.
“Recommendation that council endorse the Seaton Recreation Complex & Library preferred base program schematic design concept…at an estimated total project cost of $266,365,000 (net HST),” said the report – Seaton Recreation Complex & Library Project Update, Financial Analysis & Next Steps – presented by Chief Administrative Officer (CAO) Marisa Caprino.
This option, the report continued, will result “in an estimated future increase in property tax levy due to Seaton Recreation Complex & Library construction costs of 6.21 per cent due to taxpayer funded debt and additional future increase to the property tax levy of 4.95 per cent due to operating costs for this building for a total budget levy increase of 11.71 per cent”.
Second Option
Another option in the report recommended that council endorse the Seaton Recreation Complex & Library base program that excludes the twin pad arena…at an estimated total project cost of $243,103,000 (net HST).
“That also includes the additional Don Beer Arena capital costs, resulting in a future increase in property tax levy of 1.82 per cent due to taxpayer funded debt for Don Beer Arena capital costs and additional future increase to the property tax levy of 5.55 per cent due to operating costs for this building that results in a total budget levy impact of 7.37 per cent,” the report said.
Emergency Reserve: It was recommended that the “Director, Finance & Treasurer be authorized to establish in 2027 an Emergency Payment Reserve to be used to cover any DC debt payment obligation shortfall and this reserve be funded by a $1.5 million contribution per year from the Casino Reserve with the target reserve balance to reach 75 per cent of the one year total DC debt payments”.
Defer till 2027
The last recommendation was that council direct staff to defer the Seaton Recreation Complex & Library project until 2027.
The anticipated impacts of deferral are:
- The lifecycle replacement of the CHDRC Pool by 2030, resulting in pool closure for about one year without an alternative aquatic facility to accommodate approximately 6,600 registered participants in aquatics programs, over 800 swim members, potential loss of retention to over 70 aquatics staff that are employed to operate the pool and aquatics programs and due to the closure of this facility, results in an estimated one-year property tax cost reduction of $731,000;
- Capital investment of $23,680,000 in deferred maintenance of Don Beer Arena to be included in the capital budget and forecast over the next ten years;
- Higher Seaton Recreation Complex & Library project construction cost due to escalation inflation and the rising cost of construction to keep it operational; and,
- Inability or limited ability to pursue future financial government grant programs for the Seaton Recreation Complex & Library project due to project status.
