Plan to borrow $241 million

Castanet – Aug 8, 2023 Story: 440675 Castanet

The City of Kelowna wants to borrow $241 million towards a total of $287 million (for a new Parkinson Recreation Centre and other recreation facilities in the city) . Taxpayers must legally be consulted for long-term municipal borrowing. This can be done by referendum—where the public votes for it—or by the Alternative Approval Process (AAP), which is a “negative” vote.

The city has chosen the AAP and requires 12,160 residents to vote against it by ballot by Sept. 15, – a near impossible task considering it is August, this is vacation time and it is hot out there if one wanted to take ballots around. Here are some points you may not know.

1.Did you know:

• The Parkinson Recreation Centre (PRC) is allocated 84%, or $242 minion, of the $287 million?

• The Rutland Sports fields is allocated only 1.5%, or $4.5 million?

• Glenmore and Mission construction of their activity centres together are allocated only 12%, or $36 million?

• UBCO is allocated 2%, or $5 million?

This isn’t on the ballot. Coun. Ron Cannan said packaging $40 million for the other facilities along with the $242 million price tag for the PRC is “coy”. I agree.

2. Do you know that in February 2022, Kelowna city staff indicated a “slight preference” for building the new PRC north of the creek? Also, do you know this “slight preference” will cost an additional $62 million for road work, access and infrastructure (widening roads, traffic lights, etc.)?

What could the city do with $62 million if it located the new PRC back to the south end where no green space would be lost?

3. How may people think the proposed “opulent” option is the only one. Is it this or nothing?

The plan is to construct a large PRC for $180 million. The City of Toronto is about to open its biggest community centre, which is coming in at $90 million, including a library. That community centre part is larger than the proposed PRC.

We could have two new large community centres for the price of what is proposed for the PRC. There are options.

4. Did you know the interest on this borrowed $241 million is $220M (5% over 30 years)?

This would put the total amount at $460 million, to be repaid and push the project at over a $500 million, primarily for the PRC.

If the PRC was located back to the south end (saving $62 million) and came in at $90 million, and the other components at $40 million (were included), the total cost would be $130 million. Subtract the $46 million not being borrowed for a total amount to be borrowed at $84 million instead of $241million—almost one-third of the amount to be borrowed. Therefore, almost one-third of the interest, too.

To vote against this expensive and impractical proposal, fill out your AAP ballot and get it into Kelowna city hall by Sept. 15.

You can find the ballots at the city’s website or pick one up (or more for your friends, neighbours, etc.) at the PRC or Kelowna City Hall.

Susan Ames