Amalgamation Money

Castanet by Wayne Moore - Story: 22710October 03, 2006 / 7:00 pm
Amalgamation or Incorporation? Either way, the Provincial Government is prepared to contribute at least $25 Million to the process. Minister of Community Services, Ida Chong, recently sent letters to both Kelowna and the Westside Governance Committee. Documents, obtained by Castanet, outlines how much the province is prepared to spend for areas such as policing, maintenance and restructuring. In both letters, Chong stressed the financial offers are approximately equal. "This will enable voters of the Westside area to make a decision based on their views of the respective options, and not be influenced by the amount of Provincial assistance," says Chong. Assistance is broken down into six sections...
Municipal Restructure Assistance - In the case of incorporation, the government will provide the new municipality with a Restructure Assistance Grant of $250 per person based on the current population. That would total $7 Million. In the case of amalgamation, the grant totals $200.00 per capita or $5.7 Million, plus an additional grant based on the combined populations of Kelowna the Westside. That too would total $7 Million.
Policing - In either scenario, being incorporation or amalgamation, the new municipality will be responsible for 90% of policing costs effective April 2012. Until then, the province will continue to police the Westside at a cost of approximately $2.5 Million per year.
Transportation Assistance - The Ministry of Transportation has studied local roads on the Westside area, and generally considers the local road infrastructure to be in good shape. The Ministry will continue to provide road and bridge maintenance for five years, or in the case of amalgamation, could provide a combination of years of service plus a cash settlement. In either scenario, the total assistance package works out to approximately $960,000 a year or $4.8 Million.
Rural Tax Refund - The new city would be entitled to an amount based on the province's revenues for the year during which the restructuring is implemented. Restructure Implementation Grants - The province will provide approximately $620,000 for referendums, election of new municipal or city councils, a transition team, infrastructure planning and the transition of the Regional District of Central Okanagan.
Financial Transfer Programs - Through incorporation or amalgamation, the new municipality will be eligible for on-going Traffic Fine Revenue Sharing and the Gas Tax Rebate for the Westside. The Traffic Fine Revenue Sharing could amount up to $250,000 once the five year transition period has ended. The Gas Tax Rebate, based on the current population, would produce approximately $325,000 in 2007, $400,000 in 2008 and $800,000 in 2009. The letters go on to indicate a new incorporated municipality or amalgamated city would include the part of the Westside Electoral Area which lies within the RDCO Official Community Plan boundaries. Westbank Indian Band land within the area is not included. Chong says, given the Westside Governance Committee's timeline of January and February 2007 for public consultation, the earliest possible time for a vote would be May, 2007. She says if Westside residents vote in favour of change, the new municipality would be incorporated or restructured in December of 2007 following November elections.