Financing RCMP Building Will Add $66 to Average Tax Bill for Next 20 Years
By 250 News
Tuesday, October 05, 2010 04:00 AM
Prince George, B.C. – The plan for the new RCMP building at 4th and Victoria has been changed.
This evening City Council voted in favour of abandoning the underground parking for the project, and removing the emergency operations centre from the design.
The changes mean the price tag for the new facility will be about $5 million dollars cheaper overall.
Council has also voted to start an alternate approval process for the balance of the funds it will need to borrow to build the facility, and it will start to prepare tender documents so the project can go to tender as soon as the alternate approval process is complete.
Under the alternate approval process, 10% of eligible voters have to officially register they are opposing the borrowing of the money.
The amount of money in question is $13,821,000. The city has already borrowed the rest of the money for the estimated overall construction cost of $38.9 million. That figure is down from the latest estimate of $44.76 million.
According to a report presented to Council this evening, the cost of servicing the debt for a 20 year term for this facility will add about $66 dollars per year to the tax bill of a home assessed at $200,299.
It is that tax burden which has Councilor Brian Skakun saying he cannot support moving forward with the plan to build a new detachment "We have to stop making these decisions in isolation" says Skakun. He says with the borrowing for this project and the upcoming Winter Games , he worries the City's credit limit will be maxed out.
Councilor Dave Wilbur who has long been opposed to a new detachment says the existing facility is "a rabbit warren which is wholly inadequate". Wilbur says while millions have been cut from the orginial plan, he is confident there will be further reductions because the construction sector rates are very favourable at this time. He is also encouraged that the City will sell off some other holdings to offset the amount that will be eventually borrowed.
Wilbur says he isn't a fan of the alternate approval process, and would like the City to pose a referendum on this matter that could be held with the next municipal election. That idea was quashed because Councilors didn't want to delay the decision and possibly lose the better interest rates and the competitive construction market. Councillors Wilbur, Skakun and Munoz supported having a referendum, Frizzell, Bassermann, Green, Stolz and the Mayor voted against it.
Councilor Munoz says she couldn't support this move without seeing how this project will impact the overall capital plan. She tried to put the alternate approval process on hold until the capital plan for 2011 was available, but she failed to get anyone to second that motion.
"I am very supportive" says Councilor Murry Krause, "So although I can appreciate this is a big ticket item I am very concerned about having RCMP officers work out of a facility (Brunswick Street) which needs alot of work."
Councilor Garth Frizzell says the four Councillors (Stolz, Wilbur,Bassermann and Skakun) who worked on finding cost savings "Henceforth should be known as the $6 Million dollar men, they saved us a lot of money."
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