On Saturday, Nov. 4, Summerland voters will decide whether to approve funding for the proposed Summerland Recreation Centre.
The referendum will be held at the Summerland Arena banquet room, 8820 Jubilee Rd. E., to determine if there is sufficient support for borrowing up to $50 million for the construction of the facility.
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The wording of the question is as follows: “Do you support the Corporation of the District of Summerland borrowing up to $50 million with interest, over a period not exceeding 30 years in order to finance the construction of a new recreation centre to be located at 8820 Jubilee Rd. E., by way of Loan Authorization Bylaw No. 2023-016?”
A simple majority of ballots cast will determine whether there is sufficient support for the proposal.
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The proposed facility, if approved, would have a footprint 60 per cent larger than the existing facility in Summerland.
The proposal includes a six-lane, 25-metre pool, leisure pool, hot tub and steam or sauna room.It would also have modern change rooms, including fully accessible family/universal change spaces. Other amenities include a fitness centre, fitness and activity multi-purpose room and a youth and family multi-purpose room.
The facility would be built to modern energy efficiency standards, a minimum LEED Silver rating.
Summerland’s existing pool facility, the Summerland Aquatic and Fitness Centre, is on Kelly Avenue, on property owned by the Okanagan Skaha School District.
The existing facility was opened in 1976 and has been expanded twice, in 1988 and 1996. However, the original pool and system are still in place.
When the existing facility was built, Summerland had a population of 6,724. By the 2021 census, the population of Summerland had grown to 12,042.
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If the referendum fails, the municipality will continue to use the existing facility until it is no longer usable.
A facility condition assessment from 2018 showed major building mechanical, electrical and pool systems have all exceeded their usable life. The building envelope is also in poor condition, the report stated.
In addition, some of the parts required to keep the pool functioning are no longer being manufactured. As a result, maintenance crews must search for used parts.
If a major component such as the boiler were to fail, the pool would no longer be functional.
If the replacement for the aging facility is approved, it would have long-lasting consequences for Summerland taxpayers.
The November 2022 cost estimate for the proposed facility is $50 million, including detailed design, construction and contingencies.
If the full amount was to be borrowed, the borrowing would be done in four stages, through the Municipal Finance Authority. The four loans would be taken out in 2024, 2025, 2026 and 2027. Each of the loans would have a 30-year term.
To cover the cost of borrowing, a 3.76 property tax increase would be added in 2024. In 2025, an additional 3.77 per cent increase would be required. Another 3.77 per cent increase would be needed in 2026, followed by a 3.76 per cent property tax increase in 2027.
No further tax increases are expected for the pool after the last increase in 2027. However, changes to the interest rates during the four draws could affect the amount of the tax rate increases.
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For a property with an assessed value of $600,000, the costs would reach $468.34 a year by 2027 and would remain at that level. A home with an assessed value of $899,173 would have total costs of this project would be $560.87 a year in 2027. A home assessed at $1.1 million would pay $623.65 a year until 2027 for the pool project.
The tax burden for the pool could be reduced significantly. The municipality of Summerland 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.
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