Thursday, March 31, 2011

The Blue Walls

The stage is being set for down the road when the true price of the new police station comes to light. We started with a $90 million dollar project and now the Police Chief is estimating $130 million. When the true price comes in the scenario will be that it is over $130 million, no doubt due to increased constructions costs, and the increase will be measured from the $130 million price tag rather than the original $90 million.

What annoys me further is the comparatives used - Calgary, Winnipeg and Edmonton. Not Regina.

Calgary is the third largest municipality in Canada with a population base of roughly 1 million citizens. Calgary is doing a purchase and renovation of 650,000 square feet for a total of $130 million. Saskatoon has a population base of roughly 202,000 citizens and wants a $130 million dollar 330,000 square foot facility.

Winnipeg is the 7th largest city in Canada with a population base of roughly 650,000 people and is doing a purchase and renovation for $135 million. Again, Saskatoon has a population base of roughly 202,000 citizens and was a $130 million dollar 330,000 square foot facility.

Edmonton is the 6th largest municipality in Canada with a population base of roughly 1 million people and has 365,000 square feet and uses division substations around its city. There are no plans for a new facility. Again, Saskatoon has a population base of roughly 202,000 citizens and wants a $130 million dollar 330,000 facility.

Regina is the 18th largest municipality in Canada with a population base of roughly 180,000 residents.

Saskatoon is considered the 17th largest municipality in Canada with a population base of roughly 202,000 residents.

I took the population numbers from the last census and acknowledge that these cities may have grown in size since the census. And I am only looking a the population base for the city proper as policing is only done within the city limits.

Why not use Regina as a comparative? Our population bases don't differ to the degree of the other cities used. Our demographics are about the same. We sit side by side on the scale for municipal size. I suspect Regina is left out because it would make our new police station look grandiose by comparison.

To be clear I am in support of providing our city police with the necessities to do their jobs and in as safe a manner as is possible for that profession. As the city grows, the police service should grow. But I do think the new station is overkill.

As for how the financing works (SP Mar. 31/11), come 2017 what happens then? The total cash accumulated to that point is stated to be $38 million. Where does the other $100 million plus interest come from?

And when the city starts deviating from its traditional 10 to 15 year repayment period and starts amortizing debt over 30 years, alarm bells should go off in the heads of taxpayers. Any good financial advisor will tell you to pay of your debt as quickly as possible because in your first years on a mortgage the bulk of your payment goes to interest.

And I don't think cities can go into bankruptcy.

3 comments:

  1. This whole police station stinks to high heaven. I also was outraged that the comparable cities used were all significantly larger than Saskatoon (and even taking high growth and saying doubling our population to 400,000 we're still at only 2/3 the size of the smallest city used as a comparable). Not only that but the cities with 4 and 5 times our population are building facilities that are in the same price range. Do they have underground heated parking for all officers? Cultural smoking rooms? Shooting ranges?

    The public should be outraged about this and I agree the alarm bells of amortizing this over 30 years is outrageous. The only reason that it is being amortized this long is because we are maxed out at current debt, yet continuing to spend like drunken sailors. This is akin to our loan with the bank running out so financing our purchases with a credit card instead.

    I was always impressed with the work done by Chief Weighill, however, he has exposed himself as fool on this new station.

    I hope someone steps up to challenge this absurd idea.

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  2. We will continue to see the police do media news conferences about major crime bust etc. so people feel more passion for giving them the "tools" they need. I now get to add the police administration along side the school divisions as group I'd love to get rid of.

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  3. Hang on. Since when is the size of a police HQ scalable in proportion to population? You wouldn't say that a two-passenger car would cost half as much as the four-passenger model. Sounds like police stations cost about $130 million in large Canadian municipalities.

    This is not to justify the cost, mind you, but only that using population size is likely not the only factor going into a new facility.

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