September 01, 2016 - 12:02 PM
KELOWNA - West Kelowna taxpayers go to the polls on Sept. 17, 2016 to decide whether the City will move forward with borrowing up to $7.7 million to build a permanent City Hall, part of the larger West Kelowna Civic Centre Project.
In the interest of ensuring accurate information is being shared amongst residents, the City is distributing a Question of the Week, providing answer to the most common questions we are receiving about the City Hall project.
This week’s Question is:
How can building a new City Hall not increase taxes?
The total cost for building the City Hall portion of the Civic Centre is $14.8 million. This is a guaranteed maximum cost, which means the developer cannot charge more than that.
The amount the City is requesting permission to borrow in the referendum is a maximum of $7.7 million. The remainder of the funds will come from City Reserves and Gas Tax. The Municipal Finance Authority will lend the City the money at an estimated rate of 2.6% over 20 years. This equates to $472,480 per year or a total of $9.45 million.
The City has budgeted repayment of the debt within its current 10-Year Financial Plan. That financial plan already includes an annual 3% tax increase. The construction of the West Kelowna Civic Centre Project will not increase this number any more, nor will it have any impact on the City’s 10-year Capital Plan (i.e. it won’t affect other capital projects already on the list).
In addition, revenue generated from leasing spaces in the City Hall will go directly towards mortgage and debt repayment.
Vist the West Kelowna City Hall website for more information.
News from © InfoTel News Ltd, 2016