Carleton Place Council held their regular session of their Corporate Services Committee on Tuesday April 18. Staff presented various scenarios and options for funding the replacement of the town’s central bridge and the arena’s change-rooms. While council directed staff to begin the tender document process for the arena at the March 20th meeting of the Community Issues Committee, staff now recommends holding off on that process until provincial or federal grants can be secured. Their reasoning was that tender bids are usually only valid for a short period of time (30-90 days) and the town risked higher expenses if grants couldn’t be secured on time. The plans look for a $500K grant for this project with the remainder being covered by the reserves from the town’s sale of their former electricity utility and taxes.
With the central bridge costs estimated at $9 million (before professional studies and formal tenders), staff outlined the borrowing costs involved assuming they were successful in obtaining a $2M grant. The town has sufficient ability to borrow up to $68M and options to finance the municipal portion of the bridge would see tax increases above inflation in the range of 1-2.25% for between 3 and 4 years. On a home assessed at $220K a 1.0% tax increase would equal $15.20.