File Photo (Image Credit: CFJC Today / Adam Donnelly)

By Garry Davies

Sound Off

SOUND OFF: Reject the city’s flawed Alternative Approval Process for Build Kamloops

Sep 4, 2024 | 3:37 PM

DEAR FELLOW KAMLOOPS TAXPAYERS, we are writing to urge you to send a response letter before September 12 to city hall challenging the Kamloops city council’s use of the Alternate Approval Process (AAP) to borrow $140 million for a performing arts centre (bylaw 57-1) and $135 million for a multiplex facility (bylaw 57-2), totaling $275 million of taxpayers’ dollars.

Our opposition to this process is based on several reasons. Firstly, the AAP process is meant for emergency situations, typically involving borrowing for utilities like broken water main replacements. It is not appropriate to use this process to bypass the electorate and approve significant spending without a referendum. This approach is undemocratic, unfair, and will be challenged by the citizens of Kamloops.

Secondly, the proposed borrowing would result in a significant tax burden on households, particularly during uncertain times. The loans and operating costs will tax each household $125 per year for 30 years, on top of projected tax increases of 7 per cent next year. The city’s financial situation is already strained, with debts rising substantially since 2022. We encourage you to review the public declaration of budgets at Kamloops Financial Statements 2023.

Thirdly, we are concerned about the lack of transparency and oversight in this process. The previous city council’s decision to cancel the referendum during COVID-19 was understandable, but the AAP process lacks proper citizen-led oversight to prevent city administration from rejecting response letters and pushing the proposal forward regardless.

We believe that the council should present a reasonable proposal, including capital costs, operating costs, and a long-term business plan to be transparent about the projects and put it to a proper referendum. Alternatively, the city could explore public-private partnerships or seek federal funding to finance the projects.

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We encourage you to send a response letter rejecting the use of the AAP. The response letters are available at Kamloops.ca, or you can use the QR code to get the letter for bylaw 57-1.

Lastly, we would like to highlight the misleading tax calculation presented by the council. The proposed borrowing of $275 million, with an interest rate of 1 per cent amortized over 30 years, and a 10-year renegotiation period, would result in $70 million in interest alone. This information is not easy to find, but it was calculated using proper accounting methods. Moreover, if you multiply 47,200 households by $125 per year for 30 years, the total is $177 million, well short of the $275 million needed, not to mention the $70 million in interest.

Please join us in opposing the AAP process and the proposed borrowing by sending your response letter. Let’s ensure that our voices are heard and that our tax dollars are spent wisely.

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Editor’s Note: This opinion piece reflects the views of its author, and does not necessarily represent the views of CFJC Today or Pattison Media.