Notice of Elector Alternative Approval Process

What’s proposed

The District of Squamish proposes to refinance current debt by borrowing a sum not exceeding $8,130,082 under authority of “District of Squamish – Oceanfront Development Corporation Loan Authorization Bylaw No. 2377, 2015.”  This would refinance the current Oceanfront debt over a maximum of 20 years, enabling the District to more effectively manage the debt repayment schedule. This is a fallback position that will avoid depleting District of Squamish reserves and/or significantly raising taxes to cover balloon payments, while completion of the sale of the Oceanfront land and subsequent repayment of the debt is pending.

Why is this important to taxpayers

Two balloon payments are due on the existing debt in May 2015 and 2016 ($3 million and $5 million respectively). Refinancing this debt over 20 years would protect reserves and avoid the potential need to significantly increase property taxes in order to pay for the $8 million in balloon payments. Such increases to property taxes could be in the range of 20% to 36%  over 2015 and 2016.

The alternative to such tax increases is this refinancing arrangement.

MORE INFORMATION

Notice is hereby given, pursuant to Sections 86 and 179 of the Community Charter, that the Council of the District of Squamish wishes to borrow up to a maximum amount of eight million one hundred thirty thousand and eighty two ($8,130,082) dollars in order to loan to the Squamish Oceanfront Development Corporation to discharge the existing debt with the Bank of Nova Scotia and remove the municipal loan guarantee and mortgage obligation.

District Council, on March 3, 2015, gave third reading to “District of Squamish – Squamish Oceanfront Development Corporation Loan Authorization Bylaw No. 2377, 2015” proposing to borrow, by way of debenture, a sum not exceeding $8,130,082 repayable not later than twenty (20) years from the date of issue of such debenture.

Repayment of borrowing and related interest expense will be funded by revenue generated from property taxation and will be reflected in the 2015-2019 Financial Plan. Based on 2014 taxation rates, the annual debt service cost represents approximately $11.64 per $100,000 of assessed property value for residential properties.

Pursuant to S.86 of the Community Charter, the District of Squamish Council may adopt the Bylaw if, after the deadline, less than 10% of the electors in the District of Squamish have signed and submitted Elector Response Forms. If, after the deadline of 5:00 p.m. on May 11, 2015, at least 1,282 electors (10% of 12,824) have signed and submitted Elector Response Forms, the District of Squamish Council may not adopt the Bylaw unless it receives assent of the electors by voting.

How to respond

Elector response forms must be in the form established by the District of Squamish.  Elector response forms for this alternative approval process are available to the public at Municipal Hall (37955 Second Avenue).

Only those persons who qualify as electors of the municipality are entitled to sign an Elector Response form. Qualified electors who are in favour of this Bylaw do not have to submit any forms. Qualified electors signing a response form in OPPOSITION to this Bylaw must meet all the following requirements on the day of registration:

a)   Age 18 or older
b)   Canadian citizen
c)   a resident of British Columbia for at least 6 months
d)   a resident of the District of Squamish for at least 30 days.

A non-resident of the District of Squamish who owns property within the District may be eligible to sign an elector response form but should check with Municipal Hall as to whether all the requirements of S.51 of the Local Government Act are met.

The deadline to respond is 5:00 p.m. on May 11, 2015.

QUESTIONS?

Please direct any questions to the District of Squamish at 604.815.5010 or by email.