Nanaimo city council has approved a $126-million project to upgrade the city’s public works yard, including construction of an administration building and a fleet maintenance building.
A schedule presented to council at its Feb. 23 meeting shows construction could begin later this year and be completed in 2029.
City staff said the project requires a $76.6-million loan over 20 years and will cost about $126 million including interest. The remaining funds would come from $995,000 in existing reserve funds.
Council previously failed three times to obtain elector approval to borrow the money through alternative approval processes. Since then, council has changed its borrowing policy and new provincial legislation has increased the amount municipalities can borrow without elector approval.
A city staff report said the province increased the approval-free liability zone from five per cent to 10 per cent of sustainable and controllable revenues, allowing council to proceed with the project. Council amended its borrowing policy in October to make elector approval optional if borrowing falls within the provincial approval-free liability zone.
BACKGROUND: Province doubles municipal borrowing limits to speed up infrastructure projects
Coun. Tyler Brown cast the lone vote against the project.
“From day one I have not had confidence in how this project – what is listed as needs has been scoped. I have gone back through all the documents repeatedly trying to better understand it and at the end of the day, I think a lot of building is being proposed that is being proposed as a need and I have not been convinced it is,” he said, noting the existing facilities are inadequate but he believes the project could have been approached differently.
“So taken all together I think I have not been provided with the information where I have confidence in those who have scoped the project and as a decision maker for this type of expense of 125 million over a 20 year period, I don’t have confidence to vote in favour of this.”
The staff report said the project would add about $121 annually to the average household through property taxes and water and sewer rate increases. Taxes were estimated to rise about $11 per $100,000 of assessed value.
