The regional district estimates the cost of borrowing for the local portion needed to build a new pool would be about $13 per year per for the average household based on current estimates.
Regional District Okanagan-Similkameen directors heard last Thursday the maximum that would need to be borrowed over a 20-year period would be $625,000.
“It’s to get us ready for referendum if we receive the grant. We will only do the referendum once we have the grant,” George Bush, director for Area B (Cawston), said.
The referendum would apply to all eligible residents in Area B, G, and Keremeos and would need a majority vote to allow the 20-year loan to proceed.
Recently directors voted in favour of applying for a federal/provincial ICIP Green Infrastructure Program grant to fund the majority of the price tag for a $3 million outdoor pool to be built at the Similkameen Recreation Centre site.
The grant includes a 40 per cent share coming from the federal government, 33.33 per cent from the province and the remaining 26.66 per cent ($800,000) coming from local taxpayers.
Currently the pool and recreation centre has $410,000 in reserve funding.
“The requested borrowing limit is $625,000 which would allow to maintain a balance of reserve funds for the Similkameen Recreation assets. Costs associated with the closure of the existing pool are included in the project scope and estimates,” a report presented at RDOS stated.
The request to prepare the loan authorization bylaw came from the provincial grant analyst group.
Director’s voted Thursday to give first, second and third reading to the loan authorization bylaw. The bylaw must be forwarded to the Inspector of Municipalities for approval and then the referendum held.
If the project goes ahead it would mean a similar size pool to the one currently located in Memorial Park. Cost estimates are based on a four-lane, 25-metre pool that includes a kiddie area and easy accessibility into the shallow end of the pool.
Interest for the loan is estimated at three per cent over a 20 year-term equalling $382,500 and the payment required each year is $42,385 (comprised of $23,260 in principal and $19,125 in interest).