If Port Moody residents vote in favour of allowing the city to borrow $16 million to pay for a new fire hall, homeowners could see a 3% levy added to their property tax bill this year.
If they don't, it's back to the drawing board.
The increase, if borrowing is approved, would put the city's total 2011 property tax increase at over 8% and generate an additional $700,000 in revenue. The money could be needed to pay back the loan and its associated borrowing costs, said city manager Gaetan Royer.
Another 1% would be added to the property tax bill in 2012 for a total increase of approximately 6.5% before the levy is removed in 2013.
"The levy is to start paying off the replacement of Fire Hall No. 1," Royer said. "It is the top priority project for council."
The figures were outlined during a special council meeting last Thursday where council voted in favour of a motion that would allow the city to initially borrow $8 million. Should residents vote in favour of the borrowing option during this Saturday's referendum, the motion would allow the city to begin work on the project almost immediately.
Royer emphasized that while council would be allowed to borrow up to $16 million following a Yes vote, he said it is more likely the loan will be for much less. The estimates the city is looking at are conservative, he added, and include a $2.5-million contingency fund.
"If all we need is $6.5 million, that is what we are going to borrow," he said as an example. "We are painting the worst possible picture. The worst-case scenario is we are going to need $16 million."
If residents vote against the borrowing option during this weekend's referendum, it is likely the entire process would have to start over, according to Mayor Joe Trasolini. In the event of a No vote, he said he would ask council to begin holding town hall meetings to see what residents wish to do.
"As mayor, I would say we owe it to the community to restart the process and say 'All right, what do we do now?'" he said. "If it costs $16 million and the community doesn't want to pay that, what other options do we have?"
Some of the options Trasolini said council could consider is finding a different site for the fire hall. He also said it is possible for the city to look at marketing the site for development, which could offset the costs of replacing the hall.
Trasolini added that if residents vote against the borrowing option, there is enough time for council to eliminate the fire hall levy for the 2011 tax bill.
gmckenna@tricitynews.com
VOTING DETAILS
Voting in the Port Moody referendum will take place between 8 a.m. and 8 p.m. on Saturday, April 16.
Residents can cast their ballots at:
Glenayre community centre (400 Glencoe Dr.);
Kyle centre (125 Kyle St.);
Heritage Mountain community centre (200 Panorama Pl.);
or the Port Moody recreation complex (300 Ioco Rd.).
In order to cast a ballot, a voter must be:
at least 18 years of age;
a Canadian citizen;
a resident of B.C. for at least six months immediately before the day of registration;
a resident of the city of Port Moody for at least 30 days immediately before the day of registration;
and not be disqualified by any enactment from voting in an election or otherwise disqualified by law.
Moody residents weigh in on the fire hall referendum. Please see Letters on page A11
