New city funding strategy spreads out costs
Kelowna city council approved a funding strategy for future development of recreation centres and other active community amenities at its meeting on Monday.
The strategy would facilitate the redevelopment of Parkinson Recreation Centre along with future developments and enhancements across Glenmore, the Mission and Rutland, the city said in a release, with borrowing costs spread over future years.
Funding community facilities is key to building a strong and healthy community for all Kelowna residents, said the city’s director of partnerships and investments Derek Edstrom in a media release.
“These facilities and spaces are essential to the overall wellbeing of our community as places for people of all ages and backgrounds to connect, be active, learn a new skill, and belong,” he said. “Advancing the planning and delivery of the Glenmore and Mission Activity Centres along with strategic partnerships were identified as priorities as council reviewed the Indoor Recreation Facilities Strategy and 10-year capital plan. This funding strategy considers the needs of our active amenities across the city collectively.”
Council approved the facility plan for a new Parkinson Recreation Centre earlier this year.
The plan features a greatly expanded gym space and larger aquatic and multipurpose spaces at Parkinson.
The financial strategy approved this week does not negatively impact other projects, the city said. It also said the financial strategy will allow for an anticipated tax increase of less than five per cent of the total city budget by spreading out borrowing costs.
This is intended to allow council to continue to prioritize stable tax increases for residents, said the city’s financial services director Joe Sass.
“The spread of borrowing over the years of construction allows for the debt servicing costs to be added to the budget in a manner that reduces taxation spikes and instead steadily increases the taxation impact with the full impact being realized in 2029,” he said.
City staff will draft the borrowing bylaw and elector approval of the loan authorization bylaw for council consideration this summer.
The city said debt financing is considered an equitable and efficient funding source it spreads payment, and the associated tax impacts, for a community amenity over future generations that will benefit from the amenity.
Other proposed projects include new activity centres in Glenmore and the Mission and optimization of sport fields in Rutland. Depending on grant funding, the activity centres could potentially include 91 new childcare spaces at each space.
Partnership opportunities with Okanagan College, University of British Columbia Okanagan, and Central Okanagan Public Schools are being pursued on future projects, the release said.