How much would a new $SOM Recreation Centre cost taxpayers?
If electors vote ‘yes’, Council has directed the District to pay debt servicing costs through a 50% leveled parcel tax and 50% property taxation increase.
In order to achieve the appropriate level of new taxation required, four consecutive years of property tax increases will be required, for the purpose of financing the design and construction of the Recreation Centre.
Based on the District’s borrowing rate (as of June 19, 2023), the following taxation increases would be required to cover 50% of the estimated debt:
- 2024: 3.76% property tax increase
- 2025: 3.77% property tax increase
- 2026: 3.77% property tax increase
- 2027: 3.76% property tax increase
NOTE: Should interest rates change during any of t he four estimated debt draws during construction, the projected tax rate increases would need to be adjusted to ensure the appropriate amount is collected through taxation to cover the actual debt payments. After 2027, no additional property tax increases for this capital project are anticipated.
The other half of the debt would be covered through a leveled parcel tax. The loan term would be 30 years.
Is there a contingency in place for inflation?
Yes. The current project costs budgets for an escalation rate of 14%, which reflects a late third quarter 2024 construction tender date and construction completed by the end of 2026. It is anticipated these timelines can be met.
Is the District pursuing grants for this project?
Yes. The District of Summerland is actively pursuing grants to reduce the impact for taxpayers.
General Voting Day:
Saturday, November 4, 2023
8 am - 8 pm
Summerland Arena Banquet Room
Advance Voting Days:
October 23 & 31, 2023
8 am - 8 pm
Summerland Arena Banquet Room