No to vote referendum

I am writing to express my concern about the referendum coming up in this year’s (Lake Country) municipal election.

I commend the mayor and council for putting this option forward in a referendum to (residents) of Lake Country to decide the path they should take instead of pursuing the alternative options. I think referendums are a great way to hear from (residents) on important decisions.

My first and primary concern is the cost of borrowing for taxpayers. Lake Country has seen a number of projects introduced in recent years, including (through) referendums to borrow money to purchase the Rail Trail and construct a new fire hall (both of which I wholeheartedly agreed with and voted for, given the amazing asset the Rail Trail is and the need for a new fire hall). However, they came at a cost.

The fire hall (borrowing) is estimated to cost taxpayers an additional $90 per year (for borrowing $6.6 Million). The upcoming referendum is seeking to borrow $8 million for the “potential” of purchasing lakefront property at some point in the future.

Using the same ratios and given the recent increases in interest rates, this borrowing will cost taxpayers more than $110 per year and there is no immediate benefit like the other (projects) had.

Not everyone’s financial situation is the same and while some may say this amount is minor, we need to consider other peoples’ situations as well.

Another concern I have is there are no plans in place for these funds. We are not voting on Lake Country purchasing a specific piece of land that everyone can have an opinion on, we are voting to give council and staff a bank account with $8 million in it to spend on a piece of waterfront (property) at some point in the future.

Where is this waterfront land? How big is it? Is it environmentally sensitive? How accessible is it? Will or won’t there be a boat launch? Will pets be allowed? Can you imagine asking your bank for a mortgage with no security?

Now let’s talk solutions or alternatives. The first thing that comes to mind from my business background is to not borrow that money right away but instead obtain a line of credit, or operating line of credit, secured by district assets and cashflow so a property could be purchased when it comes available, so as not to miss the opportunity. Then the district could ask for approval to convert that line of credit to a long-term loan based on the (residents) approval.

If it is decided not to pursue the purchase, the property could be sold. I am not familiar with the intricacies of lending by municipalities, so maybe this is not even an option.

Which brings me to another alternative. Not too long ago, I remember providing input on Let’s Talk – Lake Country! about the Oyama Isthmus park (a fantastic conceptual idea). Why not improve or enhance some of the existing areas, such as this, instead of borrowing money to purchase land and then have little in the bank to actually improve those lands?

Lake Country owns the foreshore rights (with the exception of a few properties) in Okanagan Centre from the base of Camp Road to the climb up to Lake Stone, most of the waterfront along Oyama Road, Beasley Park (including land recently purchased across from Beasley), and various access points in Carr’s Landing (including Coral Beach).

Each of these places (yes, I included one in each ward) among others could be improved with additional funding that would provide an immediate benefit to the taxpayers and the community.

Eight million dollars is a lot of money but when you’re considering lakefront property, it does not get you very much.

I took the B.C. Assessment land value for four properties, one in each ward, close to the parks/properties I listed previously and they ranged in value from $1.65 million to $7.5 million per acre.

That means, at best, we could purchase a little over 4.5 acres of lakefront and, at worst, we’d only get a little over one acre, assuming we could purchase it at the assessed value.

When you go to the polls Oct. 15 remember, voting in favour of this borrowing will cost you with no immediate benefit.

Josh Goode