Opposition to rail purchase grows

by Wayne Moore CASTANET - Jan 17, 2015 / 5:00 am

MFA Amortization Schedule for $2.615 million @ 2.94% Interest with a 4% actuarial 

If the last 48 hours are any indication, opposition appears to be mounting against the borrowing of $2.6 million by the District of Lake Country for its share of the CN Rail purchase. The municipality has triggered an Alternative Approval Process (AAP) to seek approval of the loan authorization bylaw. The annual debt payment would be approximately $164,555 per year over a 20 year period which works out to about $27 a year in additional taxes on the average Lake Country home. Through the AAP 10 per cent of the estimated 9,315 registered voters in Lake Country (931) would have register their disapproval to halt the borrowing bylaw. The municipality would then either scrap the idea or hold a district-wide referendum. AAP petition forms were made available at Lake Country Municipal Hall Wednesday. Since then, approximately 150 forms have been picked up. Corporate Services Director, Reyna Seabrook, says 50 of those forms were picked up by one person. To date two of those forms have already been returned. Guy Bissonette has been one of the most outspoken opponents of the rail corridor purchase. While the corridor would be a nice could have, Bissonette says their are too many must haves the municipality needs to address first. "I had a meeting with (mayor) James Baker and he told me that we have $160 million worth of infrastructure projects on hold because we have no funds and we are $11.4 million in debt so when I add the two together I call that $171.4 million in debt," says Bissonette. "Do we need another recreational corridor? I don't think we need it that bad that we need to be doing that before we are doing necessary infrastructure repairs." Bissonette says the municipality has purchased more than seven acres of waterfront property at the northeast corner of Wood Lake for development of a waterfront park. He says for a fraction of what it will cost for the CN Rail purchase the municipality could develop the park giving its citizens that waterfront access. Further, Bissonette is disappointed in the way in which council is selling the borrowing bylaw to its taxpayers.  The municipality is asking to borrow just over half of its share of the rail line ($2.6 million) while the City of Kelowna is 'lending' Lake Country the remaining $2.5 million. "They say the average homeowner is going to pay $27 a year over 20 years but that's only the first portion of the loan. Thy haven't come out and said when Kelowna comes calling for their $2.5 million we're going to hit you guys with another tax increase...you shouldn't have to read between the lines. They should be up front and say the total funding is going to cost X." Official AAP forms are available only through the district office or via mail through Canada Post upon request. There is space for just two signatures per form. Seabrook says only signatures contained within the official AAP response form can be tabulated as per provincial legislation. Privately commissioned petitions or on-line petitions are not valid. Response forms must be returned to the district offices by noon Monday, Feb 23.