Referendum on city hall?

By Wayne Moore - CASTANET Feb 6, 2016 / 5:30 am

West Kelowna council will decide Tuesday how to engage the public on construction of a new city hall. Council will determine whether to go with a full referendum or use the alternative approval process. Taxpayers will be asked whether the city can borrow up to $10.5 million for the project. A maximum of $14.8 million will also be set for capital expenditures and non-construction costs. According to West Kelowna CAO Jim Zaffino, the amount being recommended is within the current 2016-2025 financial plan, with no additional tax increase required. The 32,000-square-foot civic centre on Elliot Road would be constructed, if approved, by Strategic BC Investments. It would house city hall and an office building owned by the developer. Interior Health has committed to moving some of its services into the office building. Two residential buildings are also proposed to be built on the site. These will be contingent on the economy and pre-sales. Under the provisions of an alternative approval process, 10 per cent of eligible voters would have to vote no to defeat the request for borrowing. The AAP would cost the city about $10,000, while a full referendum would cost approximately $48,000.

Borrowing bylaw OK'd

Kate Bouey - CASTANET Dec 10, 2015 / 5:00 am
The public has spoken, and it took just minutes Wednesday for directors of the North Okanagan Regional District board to OK a bylaw allowing staff to borrow $13.25 million for the twinning of Kal Tire Place. In a unanimous vote, directors put up their hands three times to enforce the bylaw. The money is expected to be used once a design is selected for the new arena and work starts on the project in 2016. It has yet to go out to tender. Stephen Banmen, NORD's general manager of finance, says the money won't be borrowed until it is needed, likely late next year, once work is underway.Banmen said the cash would be “drawn down” slowly so as not to borrow money unless it was needed at that point in the project. Greater Vernon voters gave their stamp of approval to the project when they voted in favour of borrowing money for an ice sheet in a referendum on Nov. 28.

Art gallery next, says mayor Kate Bouey - CASTANET Dec 1, 2015 / 10:15 am

Kate Bouey - CASTANET Dec 1, 2015 / 10:15 am
A new art gallery or “art cultural complex” could be next on Greater Vernon's agenda, following a successful referendum for a new ice sheet, according to Vernon Mayor Akbal Mund. On Saturday, Greater Vernon residents voted to borrow money to twin Kal Tire Place as a replacement for the aging Civic Arena. “It's something they deserve, and they've patiently waited, so that will be coming shortly, too,” said Mund. “They have been pushing this since the mid-2000s.” However, Mund added nothing could go forward until an arts and culture master plan was completed by staff and politicians at the North Okanagan Regional District. He said politicians had to move in the right direction and ensure it was “what the general public” wants. “We want to make sure we're doing the right thing,” said Mund, pointing to the possibility of a multi-use facility. “We're just finalizing the cultural plan at RDNO.” Even the chance the matter could be returning to the front burner was good news for Greater Vernon Public Art Gallery executive director Dauna Kennedy Grant. “Certainly, having the strong voice coming from the city that we now need to focus on culture, is something that we're really going to be pushing for,” said Kennedy Grant. “We've been working on this since 1986, when we first received a grant to build an art gallery. “It's long overdue, and the parkade location was only ever meant to be a five-year temporary location – we've been in there since the early '90s.” The gallery is open to the concept of an art-cultural complex, rather than a stand-alone gallery, said Kennedy Grant. “It all depends on what site. We wanted to look at the needs of the community, and so if there were other needs and other things that had to be incorporated into that building, that would be the perfect opportunity to deal with some of those things. “We're just looking forward to being able to have that conversation with the political body and with the general public to find out what the needs are.” The gallery knows what its needs are following a review this year by the Canadian Conservation Institute. A copy of that report has been given to the North Okanagan Regional District. “The homework has been done as to what the needs are,” said Grant, listing temperature and humidity control and how the permanent collection is housed as key problems at the current location. The estimated cost of building an art gallery is “probably about a $10 million price tag,” she said. “We already have the land,” said Kennedy Grant, referring to the old flower shop, city-owned property, at the corner of 31st Avenue and 31st Street.

FAQs for Arena Referendum

http://www.vernon.ca/faqs-for-arena-referendum/

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Some of the Questions:
What is the referendum question?
Who can vote?
Why does the Civic Arena need replacing?
What does it currently cost taxpayers to operate the Civic Arena?
What is the proposed replacement?
Why isn’t the proposed plan to build to the west?
What will happen to the Vernon Farmer’s Market?
What is included in the proposed facility?
What is the timeline to build the proposed arena?
What is the estimated cost of the proposed new arena? $13,837,513.
How will the proposed arena be paid for?
What will the cost be to the taxpayer?
Who will own the facility?
What is the alternative if the referendum is not successful?
What will happen to the Civic Arena if the referendum is successful?
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Civic Arena Engineering Assessment P 1-137 RDNO agenda
Vernon Civic Arena Replacement Feasibility Study

Ministry delays arena plan

by Richard Rolke - Vernon Morning Star posted Oct 9, 2015 at 1:00 AM
The provincial government insists it’s not being obstructionist when it comes to a new arena. The Regional District of North Okanagan received word from the Ministry of Community Development Tuesday that it won’t sign off on a borrowing referendum to replace Civic Arena as an ice sheet and twin Kal Tire Place. “The ministry continues to work with the City of Vernon and the Regional District of North Okanagan in respect of the ice sheet project in Greater Vernon,” states the ministry in an e-mail. “When a decision on the matter is provided to the two jurisdictions, we anticipate a decision will be made to communicate that to the public.” It is the second time RDNO’s plans for a referendum have met with resistance in Victoria. “We’re all surprised because we followed the process they suggested,” said Juliette Cunningham, Greater Vernon Advisory Committee chairperson, of the second round of concerns being raised. “Everything that was sent to them was what they recommended.” RDNO hoped to hold a borrowing referendum in November 2014 but the provincial government blocked that process because Kal Tire Place is owned by the City of Vernon. The new strategy was for the regional district to borrow the funds and own the twinned ice sheet at Kal Tire Place. A long-term lease would place it in the hands of the city, which would take over ownership in 20 years. However, the ministry appears to still have concerns about RDNO borrowing money for a facility that will eventually be owned by the city. The regional district will consider its next steps. “We’re trying to find common ground (with the ministry). We’re still hopeful,” said David Sewell, chief administrative officer. “They have not said no but they have not said yes. They’ve asked for additional information.” While the process for a potential referendum proceeds, the lifespan of Civic Arena, which was built in the 1930s, remains in doubt. “It’s a challenge for us because Civic is no longer suitable for an ice surface,” said Cunningham. “Taxpayers should have an opportunity to support this (new ice sheet) or not and we’re not even being given the opportunity. The demand for ice is still there.”

Ongoing delays for new Vernon ice sheet costing taxpayers: Mayor

By Charlotte Helston INFO-TEL.CA October 07, 2015 - 11:30 AM
VERNON - Red tape continues to delay a borrowing referendum for a new ice rink in Vernon. The North Okanagan Regional District still doesn’t have authorization from the provincial government to hold a referendum asking voters to borrow up to $13 million to decommission the aging Civic Arena and build a second ice sheet at Kal Tire Place. Local government officials hoped to receive a green light from the province by Wednesday, Oct. 7 — the approximate deadline to organize the referendum for November — but the regional district’s chief administrative officer says the proposal still hasn’t been approved. “We had a conversation with them yesterday and they’ve expressed some concerns with how it’s currently structured,” David Sewell says. “We’ve got some work to do. We’re going to try to turn this around quickly to give them assurances, but right now it’s still with the ministry as to whether they’ll approve it or not.” The province has expressed concerns around ownership of the facility and liability, Sewell says. The proposal calls for the regional district to borrow the money for the new ice sheet, and eventually transfer ownership to the City of Vernon. Officials are reluctant to hold the referendum in December or January due to challenges with voter turnout around the holidays, so if a November date is not feasible, it will likely be delayed until the spring. “It’s challenging, time is getting very tight,” Sewell says. “We might have a few more days to make it work (for November). That’s why we’re scrambling right now to provide those assurances.” This is the second time the province has rejected the referendum proposal, and Vernon Mayor Akbal Mund says every delay is costing taxpayers. “It doesn’t make sense to me because we did what the ministry told us,” Mund says of the second proposal. “I just hope it’s not going back to square one, because we did what they asked for down to a T.” The longer the wait, Mund says, the higher the cost to taxpayers. The city is already pouring money into Civic Arena to keep it running until a replacement sheet is built, he says, adding the cost of building a new rink will only go up over time. “Every time we push something back the costs go up, so it becomes instead of being a $13.2-million project, it could become a $14-million project because as we all know, costs rise,” Mund says. The mayor attributes some of the delay to staffing changes within the Ministry of Community, Sport and Cultural Development. “We were dealing with Coralee Oakes, and now with Minister Peter Fassbender — the staff have all changed over. None of the same players are there anymore,” Mund says.

Greater Vernon Athletics Park

The $7.5 million for the Greater Vernon Athletics Park was borrowed at the 2015 Spring Borrowing rate. (2.20% for first 10 years) Using the attached amortization schedule the Principal payment each year will be $265,208 plus 2 interest payments of $82,500. (Total $430,208 each year for 20 years).

The final bill(Cost) for the Athletics Park will be produced in early 2016. Any cost above the $7.5 million will be funded from existing reserves.

Operating costs (estimated originally at $55,000 per year ) will be known as part of the 2016 GVAC budget.
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http://mfa.bc.ca/resources/tools

Water Open House

Written by Glen Morrison 107.5 KISSFM Tuesday, 07 October 2014 06:00

Greater Vernon Water users are reminded there is another open house today on the 70 million dollar borrowing referendum for system improvements.

This one is at the Rec centre from 5 til 7.

How is the Water Increase of 30% over 5 years explained ???

IMPACT OF VOTE ON RATES

1. 7How will borrowing $70 Million for the Master Water PLan (MWP) priority projects impact water rates?

A “Yes Vote” would mean that the total GVW budget would increase by 30% for debt servicing (principle + interest payments).  This increase would be phased in over 5 years. This is based conservatively on a 4% interest rate and a 20 year borrowing term through the Municipal Finance Authority. The following provides an estimate of the impact to rates based on an average domestic GVW customer:

• Average GVW Domestic Customer Water Bill in 2014: $585/year (based on 175 cubic meters of water used in one year)
• Percentage Increase: 30% phased in over five years averaging 6% per year
• Annual Increase to Water Bill: $36.00
• Increase to Water Bill by 2019:  $180 (total annual bill in 2019 = $765)

It should be noted that this increase is only to fund the MWP priority projects and does not include additional increases due to the Consumer Price Index (CPI), increases in operations and maintenance, costs associated with any legislative changes, or other capital works projects required outside of the MWP (e.g. emergency repairs or infrastructure renewal). This projected increase for the MWP priority projects is for project construction costs in 2012 dollars using the 2014 rate structure for domestic customers (Greater Vernon Water Rates (Bylaw No. 2622, 2014).  

A “No Vote” would mean that the projects outlined in the MWP will not proceed as presented. The impact on rates is unknown and would only be determined following a review of the MWP with elected officials and Interior Health.

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Don Quixote Note:

If we borrowed $70,000,000 for the Master Water Plan Capital Requirements this is the repayment schedule we would have for a 20 year borrowing at the RDNO predicted conservative lending rate of 4.00%. http://mfa.bc.ca/long-term-lending-rates (This chart is for comparative purposes only as rate are only guaranteed for the first 10 years.)

The Annual Financing Costs would be $5,150,722.

For 2014 the revenue required from rates was $18,600,840.
Of this $16,968,524 was to come from Domestic (Residential) ($14,224,499) and Commercial & Institutional. ($2,744,025) Balance from Agriculture was ($1,025,616) with other fees and charges bringing in ($606,700.)

Consequently the revenue required after this borrowing (if approved) would increase to $23,751,562 or a further 27.69% rates increase. (assuming rate increase spread equally over Agricultural, Residential , Commercial and fees)

However it appears that the rate increases will be applied only to the $16,968,524 For Residential,Commercial & Institutional and thus the %age increase will be (16,968,524 +5,150,722)/ 16,968,524 = 30.35% 
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An interactive calculator where you can put in your average quarterly consumption and see the annual effect of the 30% rate increase predicted can be found at the link below.

https://docs.google.com/spreadsheet/ccc?key=0AqjuHhD4a7O5dEZmRjZzallUdm4xRS1FZGxYcDJqZVE&usp=sharing

Cost of a $13 million Borrowing

If we borrowed $13,000,000 for the Ice Sheet Twinning  this is the repayment schedule we would have for a 20 year borrowing at the Fall 2014 lending rates of 3.50%.   http://mfa.bc.ca/long-term-lending-rates (This chart is for comparative purposes only as rate are only guaranteed for the first 10 years.)

The Annual Financing Costs would be $891,562.75.

O/S Borrowings on Multi-Plex Facility.

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Don Quixote Note: What are the current O/S Borrowings re the Multi-Plex: Annual Taxpayer Requisition for 2013 was $1,273,018. Of this $465,689 went towards interest and the balance towards Prin. & Actuarial. The 2015 Requisition (if referendum passes for Ice Sheet Addition) will add $891,562 to tax requisition required. (at an est. Interest rate of 3.5%)
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The Majority of the Existing  O/S Tax requisition ($1,231,960 ) will end in 6 years in 2020. This annual requisition is charged to improvements only.

Annual Costs for a $70 million Borrowing !!

If we borrowed $70,000,000 for the Master Water Plan Capital Requirements this is the repayment schedule we would have for a 20 year borrowing at the Fall 2014 lending rates of 3.50%.  http://mfa.bc.ca/long-term-lending-rates (This chart is for comparative purposes only as rate are only guaranteed for the first 10 years.)

The Annual Financing Costs would be $4,800,722.

For 2014 the revenue required from rates was $18,600,000.

Consequently the revenue required after this borrowing (if approved) would increase to  $23,400,722or a  further 25.81% rates increase. (assuming rate increase spread equally over Agricultural, Residential , Commercial and fees)
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You can find the Prelim Water Rates Calculator that will show you the effect of the more than 20% increase for residential water rates in 2014 at https://docs.google.com/spreadsheet/ccc?key=0AqjuHhD4a7O5dHR2UzU5WkhaTF9HLW5FOW1wNmpDQ0E&usp=drive_web#gid=0 

You can plug in your average Quarterly usage and the calculator will show you the proposed new water rates charge effective April 1, 2014.  (Your first bill will show up in early July.)