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PROJECT BUDGET

The project budget is $134 million.

Saskatoon Public Library is committed to building the new central library within our available funding sources without requesting additional borrowing. We are under tremendous budget pressures with this project but remain confident we can deliver this project within or close to the current budget.

Since 2019, project costs have increased due to inflation and supply chain disruptions following the COVID pandemic. This has placed significant financial pressure on the project. SPL continues to work aggressively to mitigate the impact of cost increases. Some of the actions we have taken to manage cost increases are reallocating funds within the project budget, redesigning the library and reducing its size to lower construction costs, descoping some equipment from the project, which we have identified alternate funding sources for if required, continuing to apply for grants and seek alternative funding sources and continuing to work with our general contractor, architects, engineers and design-assist trades to find additional cost savings.

This project is proceeding using construction management procurement and sequential tendering. In consultation with industry and the City of Saskatoon, we believe this is the most inexpensive way to deliver the new central library project. The revision of the construction documents will occur concurrently in stages aligned with the construction schedule. At the end of the redesign, we will convert the construction contract to a stipulated sum. This methodology has multiple advantages that will assist us in controlling costs:

  • The general contractor is engaged early and works collaboratively with the design and engineering teams.
  • We are working with design-assist trades throughout the planning process, which improves our cost estimate accuracy. These are the organizations that will build the library.
  • Sequential tendering enables us to achieve scheduling efficiency, reduce costs and mitigate escalation impacts.

FUNDING SOURCES

The project is being funded as follows:

  • Capital reserves: $46.4M
  • Borrowing: $67.5M
  • Donations: $15M
  • Sale of Frances Morrison Central Library: $4.5M

NEW CENTRAL LIBRARY CAPITAL RESERVE FUNDING PLAN

As reflected in the library levy, the library is an independent taxing authority separate from the City of Saskatoon municipal property taxes.

In 2009, the City of Saskatoon and SPL established a funding plan to save for a new central library. The plan schedules incremental increases to the library levy from 2009 to 2026.

The funding plan is essential because it:

  1. Funds the project’s construction costs.
  2. Offsets increased operating costs when open.
  3. Allows the library to repay the loan without tax increases for the capital project after 2026.

The average homeowner (with an assessed property value of $371,000) paid $242.91 for library services in 2024, including the new central library.

Two reserve contributions remain in 2025 and 2026. For the average homeowner, those increases translate to less than $1.60 annually. This means that by the time the library opens its doors, there will be no tax increases to fund the capital project or to pay back the loan.

Economic Benefit

In the new central library business case, the economic impact assessment estimates the construction of a new central library will:

  1. Add $132M to Canada’s gross domestic product. (~70% or $92.4M will be in Saskatchewan).
  2. Create 1,043 full-time equivalent jobs in Canada.
  3. Produce over $15M annually in GDP once open.