Inflation hits 10-year plan in pocketbook
A 10-year plan for infrastructure projects in Kelowna will require significant adjustments, mainly due to inflation as high as 30-plus per cent, Kelowna city councillors learned Monday morning. That will affect everything from parks to city buildings to roads from 2022 to 2031.
“The plan forecasts $1.63 billion in infrastructure investment required to accommodate growth, enhance services, renew existing infrastructure and address climate change,” explained Jolene Shaw, acting financial services divisional director, in a detailed and complex accounting report.
“However, given current available funding, there are many projects that the city cannot invest in at this time. These projects account for an additional $744 million of proposed investment to support service delivery to the community.”
The 650-page report, accepted by council, was the second of three annual reports. The third is expected to be presented in August for final review and endorsement by councillors.
When comparing the old and new plans, in total there are: 609 priority one and priority two projects and programs; 53 are new projects; 31 projects have been removed or cancelled; 224 projects have changed due to completion of the 2040 Official Community Plan, Transportation Master Plan and 20-Year Servicing Plan; and 68 projects have seen significant cost increase or decrease greater than $5 million.
The parks department analysis is an example.
“Significant park investments that will move forward include: Pandosy, Glenmore, DeHart, Kerry, Casorso and City parks,” said Shaw. “Going forward, the city will construct one neighbourhood park per year starting in 2024.”
Some projects – seven neighbourhood parks and proposed linear parks, for example – will be deferred or dropped to the lower priority.
Revenue through development cost charges (DCCs) dropped when developers rushed their projects through before higher park development DCCs fees became effective. Meanwhile, DCCs for parkland acquisition accrued faster.
Coun. Brad Sieben worried the city would buy land for parks but then, not have the funds to build them as happened with the Regional District of Central Okanagan. City manager Doug Gilchrist noted the DCC acquisition fund has significant reserves but acknowledged it hasn’t kept up with ballooning property prices.
Coun. Mohini Singh described the report as “very exciting” but also “frightening” as she was reassured 911 upgrades would be seamless.
Coun. Luke Stack also zeroed in on park deferrals and expansions as well as major new road connections in the Mission, the extension of Burtch to KLO, and Hollywood Road extensions.
The continuation of Clement Avenue from Spall Road to Highway 33 (current pricetag $37 million) is now a top priority with property purchases planned north of there. It’s a complex challenge impacting the public works yard and transit quarters but to date there is no provincial or federal funding, Coun. Maxine Dehart was told.
The province is expected to finalize a Central Okanagan Integrated Transportation Study by the end of the year which could provide answers. Discussions with provincial officials are “ongoing.”
Coun. Charlie Hodge described it as “a whole lot of good reading” but wanted to know which new parks will be deferred.
Mayor Colin Basran commended the assembled department managers for “a really challenging exercise given our current economic climate. You’ve done a really good job of balancing that with the priorities of council.”