Penticton Herald

Growth needs to be fully costed

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Dear Editor: Any new growth contemplat­ed in Penticton’s new Official Community Plan needs to be fully costed. It’s not that complicate­d. In new communitie­s, developers pass costs for new water and sewer pipes, stop signs, sidewalks, etc. onto the purchasers of property. It’s the capital costs of infrastruc­ture that’s necessary for residents to live there and recovered through new home sales. But more often than not, the pressure put on existing and even future community assets is not adequately accounted for.

When developers build something in existing areas (i.e. infill) they take advantage of previous investment­s and often contribute little toward the new pressures being put on existing infrastruc­ture (intersecti­ons, roads, storm and sanitary sewer, electricit­y, etc).

Again, that usually only represents the capital costs. The money paid by developers only covers the requiremen­ts to have the infrastruc­ture built, but not the long-term increases in operating costs.

As with establishe­d communitie­s, new communitie­s require services... fire, police, transit, snow clearing and ongoing parks maintenanc­e. They’re paid for through operating costs that are usually partly covered by tax dollars. Further, operating costs go beyond infrastruc­ture specific to any one part of a city. There’s other off-site costs for new waste facilities, recreation centres, upgrading roads, bridges, traffic control lights, parking lots, adding bicycle lanes, etc.

Over the long term (sometimes 20-30 years), growth usually does not pay for itself. It’s at the time of developmen­t when costs need to be captured. Otherwise, costs are hidden in future taxation, utility and user fees.

We’ve all heard city department­s say when we pay for one service, we might not be able to afford another. That’s why you, as citizens, will sometimes see a city department tell City Council it can’t fully meet priorities. Here’s four examples of how the cost of growth is not fully captured:

• requests for transit service to a new subdivisio­n.

• using payments in lieu of parking instead of providing parking in new developmen­ts and recent ideas to build a new city parking lot.

• requests from developers to waive installing sidewalks in establishe­d areas.

• increasing density in establishe­d areas and piecemeal developmen­t.

These things add up quickly. With the new OCP there will be some pretty terms like “compact city,” “vibrant nodes,” etc. We all need to remember, it is most important that new growth is fully capable of paying for itself. Wayne Llewellyn Penticton

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