Senior government funding isn’t lining up with the Crystal Pool replacement schedule, but Mayor Lisa Helps says scheduling concerns at this point are only hiccups and the project is still on track.
“I feel relatively confident that we’re doing all the work we need to do to secure project funding for this year or next year,” Helps said.
In a quarterly update going to council this week, staff warn of potentially serious cost escalations on the $69.4-million project if provincial and federal government funding is not secured by end of February.
“The current projections estimate this incremental cost to be in the range of $300,000 to $500,000 per month,” the staff report says.
In addition, $6 million in gas-tax funding confirmed for the project is contingent on other funding being in place by March 31.
And the report says the timing of the new federal government Investing in Canada grant program launched last month will make meeting those deadlines tight.
“The timing of the social-infrastructure program, which applies to this project, is now anticipated to open for applications in late 2018 or early 2019, with decisions expected in the first half of 2019. The potential for funding confirmation occurring in mid-2019 does represent a later time frame than anticipated in the project schedule,” says the report.
It notes that since the last project update, the province has said the social-infrastructure grant process will likely begin this year with decisions anticipated “in the first half of 2019.”
Helps says every indication the city has received from both senior governments is that everything is on track.
“We need to have the funding confirmed by the end of February 2019. So if all is good by then, then there will be no cost increase or delays. I think at the worst, we could anticipate potentially a one-month slippage,” Helps said.
Helps said city staff have a responsibility to take a conservative approach when outlining project risks. As funding is yet to be confirmed, it is identified as a risk.
“We’ve been working with the federal and provincial government for the last two years seeking advice and keeping them up to date on the project, and all signals that we’ve received are that this is a highly fundable project,” Helps said.
“It meets all of the outcomes from accessibility to GHG [greenhouse gas] reductions, and it really is a matter of timing.”
Helps said senior governments don’t want to see $6 million in gas-tax funding lost any more than the city does.
“I don’t think any government would want to see anyone lose project funding,” Helps said.
