City ponders bonds to help pay for pool

By Daily Courier Staff January 3, 2008

An online survey has been launched to gauge public interest in a community bond to help finance the new Mission aquatic centre. The bonds would carry an as-yet unspecified rate of interest over a five-year term, with interest being paid out twice a year. “Rates for community bonds are similar to high-interest savings accounts, GICs or Canada Savings Bonds,” says Lynn Walter, the City of Kelowna‘s financial projects manager. If there is a positive response to the survey, the city would consider raising $2 million toward the pool‘s $46-million construction cost through a community bond issue.

Some small B.C. communities have issued bonds to help pay for municipal projects, but the proposed Kelowna bond offering would be the province‘s largest. The bond proposal was explained to city council last summer by finance director Paul Macklem as a way to “cut out the bankers” to help finance the pool‘s construction. The city could benefit if it is able to pay a rate of interest on the bonds below what it would be charged to borrow the equivalent amount of money through traditional means. Buying the bonds could also be pitched as a way for residents to show pride in their city‘s highest-profile recreational project. However, the bonds would not likely be promoted through the investment community since they wouldn‘t carry any commissions. The survey is accessible at www.kelowna.ca until Jan. 15.