91原创

Greater 91原创 Chamber of Commerce is reminding its members about municipal borrowing as both 91原创 Township and City are planning to take out loans for major projects.

The chamber, which represents hundreds of businesses in 91原创, isn鈥檛 opposing the borrowing, but in a recent posting it asked 91原创 politicians to 鈥渂e clear-eyed on the cost implications on residents and businesses.鈥�

91原创 Township recently began the alternative approval process for a $38.38 million potential loan for land purchases. It鈥檚 also running another process for $25 million to borrow for the costs of building a new replacement fire hall in Brookswood.

Greater 91原创 Chamber CEO Cory Redekop said the business group has been talking to local councils about the impact borrowing can have on local tax rates.

鈥淧roperty taxes are already heavily skewed to businesses,鈥� he noted.

READ ALSO: Township could borrow up to $25 million to build new Brookswood firehall

Businesses in Metro Vancouver pay about three times the property taxes that residential properties pay, and in 91原创, businesses pay around 25 per cent of all property taxes, said Redekop.

Township Mayor Eric Woodward disputed the idea that the borrowing will impact property taxes.

鈥淭he $25 million being contemplated for the replacement Brookswood Fire Hall is eligible to be reimbursed from Community Amenity Contributions (CACs) from development,鈥� Woodward said in a statement to the Advance Times. 鈥淥f the additional borrowing bylaws that have been granted approval in principle by council, almost none of it is within universal services, but from Development Cost Charges or CACs.鈥�

The plan of Woodward鈥檚 Contract with 91原创 majority on council is to fund their capital construction plan from growth over the long term, he said.

He also re-iterated that major projects like Yorkson Community Park and 208th Street are seeing cost increases because of inaction by previous councils.

Redekop noted that chamber members are not against infrastructure projects that borrowing is intended to fund 鈥� in fact, widening 208th Street was one of their members鈥� top issues.

READ ALSO: Township to spend $33 million to widen stretch of 208th Street

At a recent meeting, Councillor Kim Richter said total borrowing by the Township had reached $111 million this year.

Much of that is to be paid back through development cost charges. The Township has been revamping its DCC formula.

Debt is a useful tool, Redekop said, but there are also concerns around the fact that interest rates are rising, which makes it more expensive to borrow.

鈥淲hat are the long term implications of taking on this amount of debt?鈥� Redekop said.

While municipalities regularly borrow some money, the councils elected in both City and Township last fall have moved forward with new infrastructure plans and are borrowing more and over longer timelines, which means local voters have an opportunity to oppose the borrowing.

Any time a municipal government in B.C. borrows money that can鈥檛 be paid back in five years or less, it has to undertake an alternative approval process.

That means that the community鈥檚 voters have a chance to stop the borrowing, or send it to referendum.

Those who are opposed can fill out an elector response form, available online, by mail, or from the municipal hall, and fill it out and return it.

The deadline to reply for the Brookswood fire hall borrowing is coming up on Thursday, Aug. 31, while the deadline for sending in forms for the property borrowing is Thursday, Sept. 28.

However, to block borrowing of this type, 10 per cent of all potential voters in a municipality have to fill out a valid form. In 91原创 Township, that means 9,639 electors have to participate.

If that many people fill out the forms in the Township, the council has two choices 鈥� they can call off the borrowing, or they can hold an 鈥渁ssent vote,鈥� which is essentially a referendum on the question.

However, it is very rare for such an effort to succeed.

In the meantime, 91原创 City council last month approved a $15-million borrowing proposal, after it cleared an alternative approval process that 鈥� strictly speaking 鈥� wasn鈥檛 required, explained City Mayor Nathan Pachal.

The alternative approval process is not mandatory for loans that have interest payments of less than five per cent of the total 鈥渞evenue that is recur- ring鈥� from taxes, which happens to be the case with the $15-million loan proposal, he said.

That loan is to fund SkyTrain-related land purchases and pay for upgrades to the one- way section of Fraser Highway.

A staff report to council said 4.7 per cent of eligible electors had filed forms opposing the loan, which is less than half the 10 per cent minimum required under B.C. law.

Pachal described the pushback against the proposal as a 鈥渞obust鈥� citizens campaign, commenting 鈥渃ivic engagement was very present.鈥�