At the latest council meeting City Manager Jeff Ward revealed that costs for the downtown revitalization project have exceeded the budget, prompting adjustments to be made to the scope of the project.
“We’ve got the final pricing in for some of our electrical and furnishing items. Unfortunately, these are a little above what we have planned for this year,” said Ward.
The following items were identified for removal or deferral:
- Banner lighting: $470,000
- Four-way stop at 12th Avenue instead of traffic lighting: $343,000
- East and West electrical kiosks: $115,000
- Plants for planters deferred to subsequent years: $250,000
- Benches, trash cans, bike racks, tables deferred: $440,000
“We picked items that were kind of that low-hanging fruit that weren't necessities that you can always put in later if you want to, but nothing to hugely impact the look and feel of the project," said Ward.
Recommendations to address the additional expenses include adjusting the projected borrowing for the year by $500,000, applying for provincial highways surfacing funding, and allocating a portion of the 2025 Canadian Community Builds Fund to cover engineering costs.
Councillor Tony Sernick inquired about the impact of borrowing a full $3 million versus the $2.6 million.
“We have received some favourable rates as we move forward. The initial plan was to try to keep that level exactly the same. $2.6 million keeps us still under $13 million, which is a good amount,” said Ward.
Treasurer Trudy Firth explained that they are opting for core loans. “I wanted to keep it to seven years and they gave us a rate of 4.24. Of course, they can only guarantee that rate for a short period of time. So, I put in a buffer of 0.5, but there is consensus in discussions with the city manager.”
“These rates are very good, so $300,000 in the big scheme of things is not going to make that much difference. We will probably stick with the seven-year repayment plan,” Firth added.
Discussion continued on how these changes would impact the project overall.
“The banner lighting is not affecting any of the actual streetlights. The banner lighting was specifically for some of the street poles that held banners saying ‘Welcome to Estevan,’” noted Councillor Rebecca Foord.
She also suggested that the four-way stop at 12th Avenue be monitored by the traffic committee to assess its effectiveness, adding that it may be necessary to reintroduce traffic lights if required. Ward agreed that monitoring by the traffic committee would be beneficial.
“The electrical will be there so we can add the light later, if it doesn’t incur additional costs to continue to have light acquired in those areas. I think it’s a good method to look at the traffic committee and where it goes,” said Ward.
“With the traffic stop on 12th Avenue, we could also apply for grants from SGI down the road. Every year we apply for grants, so that would be a good use of that,” said Councillor Shelly Veroba. “Also, with the benches, trash bins, planters, tables, etc., there are always different groups looking for ways to have their names associated with various projects, so hopefully that will also come through.”
“Preference would be to keep the borrowing to a minimum and revisit it if additional overages occur. If needed, we can revisit the borrowing at that time,” said Councillor Walliser.
The motion to accept the recommendations was passed with all councillors in favour of the changes.
“Hopefully we can move forward and still keep everything that was promised at the beginning in regard to look and feel,” said Ward. “Things like bike racks and tables those things can be put in as we move forward. And as I mentioned, maybe some opportunities for sponsorship for some of those items,” said Ward. He added that regular updates on the downtown revitalization project can be found at the city website.