The City of Moose Jaw, on June 16, 2008, adopted a resolution to build a $61,287,116 multiplex facility. The report presented to Council by the Multiplex Steering Committee offered a detailed analysis of the funding required for this project. This analysis included: City Of Moose Jaw $34,530,560 ($19,530,560 will be new borrowing.)Moose Jaw Multiplex Fundraisers $10 million (Amount received $559,000) Provincial Government $8,378,278 (Amount received $0.00 Confirmed, but is only payable after the project is completed.) Federal Government $8,378,278 (Amount received $0.00 Not yet confirmed, if it is, it is payable after the project is completed.) Total $61,287,116 These sources of income were used in reducing the cost of the downtown location: Sale of Civic Centre property $1,354,166 Cost deducted from final cost of downtown location. (Currently not sold.)Sale of 9th Ave. N.E. property $841,666 Cost deducted from final cost of downtown location. (Currently not sold, although has long been on the market.) The Final Multiplex Steering Committee Report stated that an increase of 9.76% of the municipal portion of property taxes would generate $1,511,520, the yearly interest payment on a $19,530,560 loan over 25 years. The Report failed to mention that current city policy allots 26% of all taxes generated to the police budget. Taking this into consideration, to generate enough taxes to pay $1,511,520 in interest would take a tax increase of 13.4% The Final Multiplex Steering committee Report also failed to mention just how much of the funds used in the above calculations would not become available until after the project, or longer if pledged over time. No carrying charges were accounted for. Government funding would not be paid until after the project is completed. According to the City's own numbers, that is expected to be $16,756,556. The city of Moose Jaw will be required to borrow this amount as well, and only receive the principle at the completion of the project. Interest only payments per year would be $837,828. It will require another 7.4% tax increase to cover the interest on this further loan. The final cost of $61,287,116 for the downtown location also included revenue from the sale of both the Civic Centre property and the property on 9th Avenue N.E. Since neither has yet been sold, although one has been available since the report came out, the cost of interest only payments on this further loan will be $109,792 per year. This would require a further 0.98% tax increase, needed each year until these properties are sold. Based on the numbers provided to the City of Moose Jaw by the Final Report of the Multiplex Steering Committee, the best case scenario present would require an increase in the municipal portion of 20.9%. This number is based on the Committees own presumption on the Federal contribution. It is also based on the presumption that the Fundraisers contribution of $10,000,000 will be available up front. If the federal Government provides less, or if any of the fundraisers contributions are given over time, this tax increases rises again. It is also predicated on the Report's cost estimates being accurate. (See further). | |