A rendering of the proposed Kamloops RCMP headquarters. (Image Credit: City of Kamloops)

By Victor Kaisar

Another AAP To Come?

Kamloops council being asked to kickstart process for nearly $200-million in additional borrowing

Jun 7, 2025 | 4:28 PM

KAMLOOPS — City of Kamloops staff are asking councillors for approval to begin the process to seek public approval to borrow another nearly $200-million to fund a number of projects.

Most of that amount – $150,650,000 – is earmarked for the proposed new Kamloops RCMP headquarters that is expected to begin to rise on Battle Street next year, adjacent to the existing detachment.

In February, councillors voted to allow staff to prepare a borrowing bylaw to fund the construction of the new RCMP detachment, though it did not specify whether a referendum or alternative approval process (AAP) would be used to get the necessary approval from residents.

“The current police services building does not meet the standards set out in the Municipal Policing Unit Agreement. Without electoral approval for this project, there will be increased pressure from the RCMP to meet the required standards,” Planning and Procurement Manager Dustin Rutsatz said in a report going before Tuesday’s (June 10) City Council meeting.

“Given the RCMP’s strong emphasis on public safety and Council’s increasing the number of RCMP members in the Kamloops detachment, this project aligns well with the more cost-effective alternative approval process.”

Stay Ahead of the Curve with Kamloops' Trusted Property Manager - Rohit Kumar

May 20, 2025

Looped In

LOOPED IN WITH NIKKI OMEN: June 19, 2025

18h ago

One Man's Opinion

COLLINS: Potential water issue is no joke

Jun 19, 2025

Some projects – like interior and exterior upgrades to Sandman Centre – have already been completed, with others – like a major sewer main and road enhancement project along Tranquille Road – will be getting underway this month.

Approved Projects with Debt Funding Identified. (Image Credit: City of Kamloops)

In the report, Rutsatz added that while councillors have approved all eight of the projects that will either be wholly or partially funded through debt financing.

“The City has not yet borrowed these funds and is now implementing the process to finalize the required and Council-directed borrowing,” Rutsatz wrote. “No method for obtaining electoral approval was identified [and so] staff are now requesting guidance on the appropriate process and timing for proceeding.”

The recommendation to council is that they authorize staff to begin the process to use the alternative approval process so money can be borrowed from the Municipal Finance Authority of BC.

With council’s approval, Rutsasz also said staff will work to draw up the required borrowing bylaws for the projects.

While it’s not clear how many alternative approval processes there will be, its possible that several will be held at the same time, as the city had to hold separate AAPs last year when it sought to fund the Performing Arts Centre downtown and the arena multiplex in Dufferin.

The arts centre and the arena multiplex were not included in Rutsatz’s report as councillors have already approved the borrowing of up to $275 million after there wasn’t sufficient opposition to either of the borrowing bylaws last year.

The City also won a legal challenge that sought to overturn the result of that AAP, and an expected appeal of that ruling was later dropped clearing the way for the projects to move forward.

According to the recently released 2024 annual report, the City of Kamloops had an outstanding long-term debt just over $47 million as of Dec. 31, 2024. It was also spending just under $2.3 million in annual debt servicing and capital costs.

Overview of current and projected long-term debt in Kamloops, as listed in the 2024 Annual Report. (Image Credit: City of Kamloops)

Table showing expenses including debt servicing and capital costs, as listed in the 2024 Annual Report. (Image Credit: City of Kamloops)

In an April staff report, Rutsasz said the City had a debt servicing level of 3.9 per cent going into the 2025 financial year, well below the allowable level of 25 per cent of ongoing annual revenues. He said that debt servicing level was prior to the inclusion of the proposed Build Kamloops debt financing.

“With the exception of the land purchase at 965 McMaster Way, all anticipated debt servicing has been identified and accounted for in the Build Kamloops debt servicing (funding) projections,” Rutsatz wrote in his latest report.

“The 2025–2029 Five-Year Financial Plan has considered the borrowing costs of the projects listed [and] other than the New Police Services Building, 965 McMaster Way property and Kamloops Centre for Water Quality Intake Upgrade, the debt servicing costs associated has been incorporated in the proposed impact on debt servicing related to the Build Kamloops programs.”

Rutsatz also said if council decides to not proceed with debt funding for any of the projects, the City will need to find another source of funding. He also said an additional $200,000 would be needed if council elects to hold a referendum on any of the projects.

You can find Rutsasz’s report, and more details about the eight projects here.