Concept design of Greater Vernon Cultural Centre (image courtesy of the RDNO)

By Liam Verster

5-Year Borrowing Plan

Borrowing plan selected for funding new Cultural Centre at the taxpayer’s expense in the short-term

Aug 22, 2024 | 2:27 PM

The Regional District of North Okanagan plans to borrow some money to help pay for the Greater Vernon Cultural Centre., and is looking at the option that would have the greatest annual impact on taxpayers, but cost less over time.

At a special meeting of the Greater Vernon Advisory Committee (G-VAC) Wednesday, Aug. 21, two propositions for borrowing $28-million to fund the project were made: a 20-year long-term borrowing plan, or a 5-year short-term plan.

G-VAC voted in favour of going with the shorter option.

The report said the five-year repayment would require a higher tax impact, with an annual average household impact of $82 versus the $26 impact of the 20 year plan.

The five-year plan would see a household pay more each year but over that time they would only pay $410, versus the 20 year plan which would see would result in more interest being accrued and it costing households $520 over the two-decade period.

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It also noted that going with the five-year option would reduce uncertainty of project completion and ensure the project move ahead as quickly as possible.

The Greater Vernon Cultural Centre is estimated to costa total of $46-million to build. With the money being borrowed, as well as $5-million in external funding, the RDNO would have secured $33-million to put toward the project, leaving a funding gap of $13-million.

In order to proceed with the project and avoid any further cost escalations, G-VAC had previously indicated that the RDNO would fund that $13-million gap, with any shortfalls to ultimately be paid through taxation.

With G-VAC giving support to the short-term borrowing option, the matter would be brought forward at the Board of Directors meeting in September for ratification.

Dauna Kennedy, the Executive Director of the Vernon Public Art Gallery and the woman leading the charge in endorsing the project said in a release that “much progress has been made towards the design and function of the new facility,” and added she appreciated the monetary and land contributions for the project.

Adrianna Stange, Greater Vernon Museum and Archives Society Board President, added that the new space will provide an “opportunity to share the story of the Greater Vernon area, and celebrate our past and help shape the future,” adding that having a space to maintain records “is vital.”