Oct 2009

Budget over runs mean more borrowing for the Portage Credit Union Centre.

City of Portage la Prairie council passed first reading of a bylaw to authorize the borrowing of up to $1.8 million more if necessary for Phase 1 of the building, which includes the main arena, aquatics, fitness and banquet rooms.

“Cost estimates for the construction of the project has changed now from $35.7 million to $37 million,” Coun. Dave Quinn read from a Finance, Legislative and Property Committee report. “The city’s share of the project cost has therefore increased from $16 million to $17.3 million.”

The original funding arrangement for the city’s share was $10.1 million of borrowed money and $5.9 million coming from the city’s reserves, Quinn continued.

But with the increases, it is recommended by administration to reduce the reserve funding by $400,000 to reduce the burden on the city’s reserves.

That would make the city’s share of the funding $11.8 million from borrowed money and $5.5 million from reserves.

“The additional $1.8 million in debt is required since $10 million in debt has already been issued,” Quinn outlined.

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