Monday, January 30, 2017

Pay Back Starts For New Arena

Vernon, BC, Canada / 1075 KISS FM Pete McIntyre January 30, 2017 06:02 am
Taxpayers will see a hit on their taxes this year for the new arena at Kal Tire Place. Greater Vernon Advisory Committee chair Juliette Cunningham says the average homeowner will pay 24 dollars a year for 20 years, but a bit less than that this year….as it’s phased-in. “Nobody likes debt, but we’re committed to it, so it makes sense we’ll be borrowing it for three-quarters of the year, and we’ll start paying it back then,” Cunningham tells Kiss FM. Construction on the 13 million dollar twinning project is expected to start this spring. Cunningham says the regional district will borrow $13 million nd then pay it to the city which will own and operate the facility. She doesn’t expect any money to be left over. “There were a few changes made because of the user groups: extra dressing rooms and that kind of thing, so the pencil (budget) is pretty sharp on the project.” The annual principal and debt service payments will be $885,000. The 400 seat arena to be built at the north end of the existing building, should start this spring and be done in the fall of 2018.
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The Regional District could also chose to fund 75% of the full year of principal and interest payments based on the debt issue covering 9 months of the year- a $663,750 increase in 2017 and a further $221,250 increase in 2018
Don Quixote Note:
The above option was chosen by GVAC and the budget for $663,750 will be recommended for inclusion in the 2017 Financial plan to be approved by the RDNO Board at a future RDNO Board Meeting. This will be for a new function 064 - MULTl USE FACILITY EXPANSION.

Like other Debt issues in the Parks and Rec Function (like Community Theatre)  this will be taxed on IMPROVEMENTS ONLY. This will require an establishment bylaw to be set up to allow this method of taxation.

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