Back to SearchReality:
The total project cost for the twin-pad arena and library project is $59-million, of which the land portion is already paid along with some project management and design fees. The remaining project cost to be covered is $51-million, of which $31-million will be financed through long-term debt. This debt will be issued when the project is complete in 2023. The annual payment will be in the range of $1.5 million and will be made through tax revenue and development charges.
In summary, the municipality will borrow $31-million, use a small amount of taxation, with the balance of the project coming from reserves ($11.5-million), including development charge reserves ($14.2-million), general reserves, and federal gas tax reserves. This method of financing major capital projects is typical across Canada.
See the full financial plan for the twin-pad arena and library.
The Development Charges Act and associated regulations permit the town to impose development charges on new development so that the fees collected pay for new infrastructure required because of new development. Otherwise, these costs would be borne by existing taxpayers, which is not fair. The principle being applied is, “that growth should pay for growth”.
Municipalities are able to collect development charges to pay for indoor recreation, libraries, and emergency and fire services, in addition to roads and infrastructure-related to growth. The town recently approved new development charge rates to support future infrastructure needs.
The town was not successful in the first round of the Investing in Canada Infrastructure Program (ICIP) Grant program. However, the town plans to apply for the next round when announced. There were $10 billion in applications and only $1.0 billion in funding from all levels of government. The town has found over the years that due to its good financial health compared to other municipalities, it has not faired as well in these types of competitive applications.
While the town has not been successful in securing grant money for the twin-pad arena and library project, the municipality is ready to apply for future grants, if they are available, to support the project. Our grant writer monitors for new grant opportunities.
The grant was intended to help offset the $59.9 million cost of the twin-pad arena and library project. It was never intended to help pay for the library or for a cultural/performing arts centre, contrary to comments made on social media.
The provision of a grant for a cultural/performing arts centre was never promised by the province to the previous council.
The development charge for a single family home will increase by 36 percent and the non-residential charge will increase by 30 percent.
Anyone constructing a new home or developing a commercial property pays development charges. Town officials have reached out to several developers and they are aware of the increase. They have built the increase into the prices of their new homes. They have told the town they appreciate the phased approach and look forward to continuing to build in Wasaga Beach.
If development charges were not paid, the cost of growth-related projects would fall to existing taxpayers. The debt is $31-million, not $60-million and will be paid through tax revenue and development charge revenue as the town continues to grow. The town has ample debt capacity and interest rates are low, making it an ideal time to borrow money.
The tax rate increase for 2021 is 2.99 percent (1.70 percent when blended with the county and education tax rates). For a home assessed at $450,000, the increase will be $6.29 per month. Tax rates, based on the town’s financial plan, are projected to increase by 2.22 percent in 2022, 2.51 percent in 2023, 2.30 percent in 2024 and 2.04 percent in 2025, and most likely will be lower when blended with county and education tax rates. These increases are not just related to the twin-pad arena and library investment, but will help support other elements of municipal service delivery and related infrastructure.
Rumour:
Facebook Post – Kurt Lehmann: $14 MILLION are being used from the Development Charges to pay for the Arena. $13 Million from Reserves. $31 Million Borrowed for which we will pay the interest and the capital. Development charges are to be used for Streets and infrastructure. They FAILED at getting the government grant, a grant which was intended for a Cultural/Performing Arts Centre, however I was advised that the Library was applying for the grant and taking the whole grant, however the government gave them NOTHING for the Arena and the Library. Was this a strong response from the Provincial Government? Not only do we not have a Cultural/Performing Arts Centre that could have been paid for by government grants, we have higher taxes, we also have a 40% increase to development charges so anyone buying a new home will be paying more. The BLEEDING continues. Those that believe Developers will be paying the increase to the development charges are delusional, as the cost of the development charges will be passed onto all the local residents and future residents of Wasaga Beach who purchase a new house, townhome, condo. You and I will be paying the $60 million + Interest (for how many years??) This Council has their hand in our pockets.
Subscribe
