If a proposed replacement for the aging Summerland Aquatic and Fitness Centre is approved, it will have a long-lasting effect on Summerland taxpayers.
The November 2022 cost estimate for the facility is $50 million. This includes detailed design, construction and contingencies.
The Nov. 4, referendum is asking the public’s permission to borrow the full amount required to build this facility. If the referendum passes, the costs would be passed on in the form of a leveled parcel tax and a property tax increase.
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The borrowing, through the Municipal Finance Authority, would have a 30-year term. However, the full $50 million would not be borrowed at once. Instead, four smaller loans would be taken out in 2024, 2025, 2026 and 2027, said David Svetlichny, director of finance for Summerland.
In 2024, a 3.76 per cent property tax increase would be added for the pool loan. In 2025, the increase required for the pool loan debt would be 3.77 per cent. Another 3.77 per cent increase would be required in 2026, followed by a 3.76 per cent property tax increase for the loan in 2027.
No additional property or parcel tax increases for this loan are anticipated after 2027. The tax increases would be removed one at a time in 2054, 2055, 2056 and 2057.
A home with an assessed value of $600,000 would pay $114.17 in 2024. The next year, this would increase to $340.17. In 2026, the amount would be $347.91 and in 2027, the amount for the pool would be $467.34, where it would remain until 2054. After that time, the amount taxed on servicing the pool debt would decrease.
In addition, the municipality has applied for a grant of up to $25 million through the Green and Inclusive Community Buildings program.
If this grant is approved, the total cost of the facility would increase by around $8.5 million, but the cost to taxpayers would be reduced to around $32.5 million, a statement from the municipality reads.
No timeline has been identified for when the grant announcements will be made.
The pool project includes contingencies to cover inflation and cost increases. These include a design contingency allowance of 10 per cent, a construction contingency of five per cent and an additional contingency of $1 million for unforeseen expenses or delays.
These contingencies are intended to keep the project within its allocated budget.
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