Port Moody taxpayers who have been paying for a loan taken out to build an expanded recreation complex will continue to pay — but the money will go to something else.
Port Moody's leaky civic buildings will be repaired after city council approved a $10.5-million loan to pay for the work expected to start late next year.
The financial plan approved at Tuesday's council meeting will see a $5-million loan that was taken out to build the city's rec centre addition 10 years ago rolled over into a new loan through the Municipal Finance Authority for a term of up to 25 years. By repurposing the loan, expected to cost $625,000 annually, the city won't have to go to the taxpayers for another tax levy.
That loan, which cost the average taxpayer $32 a year, according to Ramsay, matures this year and, once it's renewed, will provide the city with the cash needed to get necessary repairs done immediately.
And not all of the $10.5 million may be needed, noted Ramsay, who said costs to repair the leaky civic centre and recreation centre buildings, plus roofing and gutter replacement at the 100-year-old arts centre building and Heritage Mountain Boulevard bridge replacement could end up costing less than $10 million.
"As we get the details, [we might find that with] repairing both the rec centre and city hall, we''ll gain some efficiencies on that," Ramsay said.
Rolling over the rec centre loan to pay for the new repairs was approved by a council majority but not all councillors were in agreement. Rob Vagramov and Rick Glumac opposed the loan authorization bylaw.
"We're going to be taking on debt for 25 years just so we can move projects ahead a couple of years," Glumac said. "That's the part I have an issue with."
Vagramov, meanwhile, wanted more public consultation on the loan, saying, "This $10.5 million for potentially 25 years could be the most significant decision that this council makes."
But the two were told the city doesn't currently have the funds to pay for repairs without the loan, and delays would put the city's assets further at risk.
"I'm comfortable… our staff may be encouraged to look at other alternatives to note where we can reduce costs," said Coun. Diana Dilworth.
The city's mayor said taxpayers expect the city to do repairs and maintenance to prevent their buildings from falling apart and Mike Clay said people don't like to see the library and city hall evacuated because of water leaking into light ballasts.
THE WORK
The scope of work was determined through a condition assessment, which found that the 20-year-old civic centre facility needed repairs, including building envelope thermal barrier and window replacement with the costs estimated at $5.2 million.
The recreation complex, meanwhile, also needs building envelope repairs expected to cost $4 million but $500,000 is coming from the federal government.
The other two projects — the arts centre repairs and the Heritage Mountain Bridge replacement — are backlogged work that was put off because of budget constraints but has to be done now to prevent further deterioration.
