Nanaimo’s third attempt at an alternative approval process to borrow up to $90 million for an updated public works yard will start Sept. 18, pending provincial approval.
It will run until 4:30 p.m. on Oct. 31.
On Monday, city council members approved three readings of the bylaw that would allow Nanaimo to seek the borrowing authorization.
The goal is to replace Nanaimo’s fleet of public works vehicles as well as its works crew administration buildings and improve storm-water management in the public works yard.
The Inspector of Municipalities will vet the city’s planned bylaw. If it’s approved, Nanaimo will launch its alternative approval process.
At least 10 per cent of eligible voters need to file opposition to the proposal for it to fail. The total number of eligible electors in Nanaimo is 79,736.
It will be the third attempt at the process, and if it’s not successful this time, the city would be required hold a referendum, Mayor Leonard Krog said Tuesday.
The $90-million loan target is higher that the previous $48.5 million, which would have covered just the first phase of the project.
Previously, the city planned to upgrade its public works facilities in phases over many years, which would have led to additional loan authorizations.
“We’ve consolidated it, so to speak, into a shorter construction schedule which will save interest,” Krog said.
This time, every household will receive a notice of the alternative approval process. Council approved that plan over a more expensive option of mailing information to individual voters, Krog said.
In addition, voters will be able to register opposition electronically, something that was not available in the past.
“Council is still of the mind that this is an entirely appropriate project for the use of the alternative approval process,” said Krog, adding the proposal is for necessary and important infrastructure.
“This is a need-to-have, not a nice-to-have.”
The anticipated impact to a typical home valued at $783,808 is approximately $139 or $18 per $100,000 of assessed value.
If approved, the projected property tax increase would be 7.7 per cent in 2024, 7.2 per cent in 2025, 4.6 per cent in 2026, 3.2 per cent in 2027 and 3.8 per cent in 2028.
If growth rates in the city are higher or lower than expected, that would affect the estimates, said Wendy Fulla, finance director.
The city anticipates five borrowings, each for a 20-year amortization. It would borrow only what is needed.
Typically the interest rate is fixed for the first 10 years and reset at the 10-year and 15-year marks, Fulla said. The actual cost of borrowing may vary due to interest rates at the time of borrowing.
The city presented an alternative-approval process last year, but an administrative error led to it being cancelled. A second effort saw the borrowing initiative scrapped again following a complaint about availability of forms that are needed to register opposition.
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