$2M too much
Stratford residents could face tax hike as price tag for new emergency services facility comes in over budget
A project that is now about $2 million over budget and could result in a tax increase next year was approved on Wednesday.
Town council voted unanimously to accept the low bid from MacLean Construction in the amount of $6.9 million to build the new emergency services facility.
This building will house the fire department, Island EMS, RCMP and include meeting rooms for the town. The town had budgeted $5 million for the project.
MacLean Construction’s bid was actually $7,187,900, but the town was able to negotiate the price down.
However, when engineering and contingency costs are factored in, the project could end up costing just north of $7.6 million.
The idea of a tax increase was in the original motion passed by council.
“It was the feeling around the council table that this is a large project that we’re undertaking here and that we currently don’t know what impact for sure this might have on our budget process for 2019, 2020,’’ said Mayor David Dunphy. “So, it was agreed that we would put that clause in the resolution that there is the potential for an increase in property taxes next year to offset some of the costs of this project.’’
Coun. Jody Jackson said the council doesn’t want to have to go down that road.
“We’re going to do everything we can to make sure rates don’t go up,’’ Jackson said.
To reduce costs from the original low bid, the town reviewed the design and chose to remove some items on the exterior of the building and use alternative materials.
But, the project is over budget primarily because the specs of the building have changed. The RCMP is getting more than the 2,170 square feet it was promised due to its requirements.
The space for Island EMS, subject to the execution of an agreement with the service, will be leased, which will help offset some costs, but cultural space and room for town recreation were not originally budgeted for.
“All of these things combined made the building larger and, of course, increased the cost. We’re having issue with costs increasing overall in the province,’’ the mayor said.
This project moves forward just one month shy of a new council getting elected. However, Dunphy said it was time to move forward.
“We have to make decisions in the town’s best interests. We can’t wait for an election. We’re duly elected by the residents of Stratford and we’re been working on this project for almost eight years now. We feel that we have the information that’s required to make the decision and to do what we’re duly elected to do.’’
Deputy Mayor Randy Cooper challenged the new council to get
it done without a tax increase.
Nicole Phillips, a town resident who also volunteers on Citizens on Patrol, said it’s a great day for the town.
“With the recent exponential growth and the number of people living here we really need to have facilities that can respond to emergencies,’’ Phillips said, noting that the fire department and RCMP have been operating in facilities that aren’t meeting their needs.
Phillips added it will be great to have an added presence of RCMP and Island EMS in the town.
Dunphy said construction could start within the
next two weeks.