The District of Squamish has $17.4 million worth of proposed capital projects to sort through in this year's budget.
On Tuesday (Feb. 21), council and municipal officials rolled up their sleeves to tackle the 2012 preliminary capital budget, which covers everything from road maintenance to fire hall seismic improvements. Before being vetted, the budget suggests paying for most of the projects -$10.2 million worth - through borrowing.
The district's current 58 per cent borrowing plan isn't viable, Chief Administrative Officer Kevin Ramsay warned, which is part of the reason the municipality is completing a strategic financial plan. Voted on by the previous council, the district also set out to raise utility rates by 65 per cent over the next five years, with the new money earmarked for ongoing water and sewer system upgrades.
"We need to look increasingly to public/private partnerships and other regional funding for significant capital projects so we can ensure that we aren't pushing the taxation to a point that is not sustainable," Ramsay said.
A million dollars worth of debt increases annual taxes by .4 per cent, which equals $5.50 from the average property taxpayer's pocket. That rate is based on last year's average Squamish residential assessment of $374,000 and current interest rates, Ramsay noted.
"Borrowing is significant as you start to add it up and get to the tens of millions of a dollar," he said.
The additional borrowing will be loaded on top of the district's principal debt balance of approximately $34 million. That figure does not include the Squamish Oceanfront Development Corp.'s debt.
Some big-ticket items noted are diking and the proposed turf soccer field. Almost four kilometres of dike in Squamish is below design standard, said Brian Barnett, the district's general manager of engineering and parks.
"In my opinion this would be an important [project] to complete," he said.
Last year, the district received $1.2 million from Emergency Management B.C. to remove river gravel that increases the risk of flooding. The grant comes with a time limit capped this August and the clock is ticking, Barnett noted. However, the district is currently waiting on Department of Fisheries permits before resuming the work.
"We have got the money and recognition that this is a worthy project and should be funded," Mayor Rob Kirkham said, noting his frustration with the lack of communication between the levels of government.
The preliminary capital budget shows the turf field as a low priority. It's on the books to borrow close to $1.8 million to overhaul the Brennan Park field, but Coun. Doug Race warned residents that approval of the district's capital borrowing for the turf field has not yet received the green light.
"Passing this bylaw tonightis not to be considered or misconstrued as a step forward in the approval process with that particular project," he said.
Safety upgrades needed to re-open the downtown Squamish Community Policing Office were listed as a top priority. Eleven thousand dollars' worth of improvements were highlighted. The Squamish RCMP have agreed to have a member of the local detachment work out of the office if its doors are opened, a move welcomed by Kirkham.
Council voted to approve borrowing for all the capital projects, although the projects themselves have not received final approval. Such a process is undertaken so that when council narrows down its list of capital projects, borrowing money can happen quickly without waiting an extra three months, said Joanne Greenlees, the district's general manager of financial services.
"Should the projects not be approved, then the money will not be borrowed," Greenlees said.
