Letters to the Editor

The District of Sparwood is proposing to borrow $5 million to rebuild Fire Hall #2 in Sparwood Heights.

This borrowing is for 100% of the cost of construction, based on estimates. This amount is estimated to cost every residential property owner $110 (or more) a year for 30 years. That amount is based on the first 10 years and will go up if interest rates go up. It is also based on a house valued at $265,000. You could pay more or less. A house worth $500,000 would pay $210 per year x 30 years in extra taxes, or at around $6,300.00.

Fire Hall #1 is the main hall where all the training takes place. Fire Hall #2 has three bays with equipment located in it and Firefighters who live in Sparwood Heights to respond. In total, Sparwood currently has nine bays to house Fire Apparatus. Fire Hall #2 received upgrades to improve the hall and bring it up to workplace standards in 2015- 2016, at a cost of about $200,000. Previous councils determined it was adequate to meet our needs, recognizing Fire Hall #1 has all the resources for a community our size.

I have concerns regarding borrowing $5 million dollars over 30 years because:

Present day economic forecasts all indicate that interest rates will go up in the next one to two years. At three per cent interest rate, the total cost would be $7.5 million over 30 years. Borrowing for the first 10 years is set at 2.34%. Over time, the proposed $5 million build would cost far more than that amount.

Historical cost overruns pose another topic of concern, especially given the speed at which this project has moved forward.

Coal mining is our economic driver and we do not know what the future will bring. Fossil fuels are widely discouraged globally at the moment. We know that the proposed coal mine in the Crowsnest Pass has not received approval to proceed. More certainty around mining revenue is needed before entering into borrowing for a 30-year term.

The present plan calls for a large area dedicated for a kitchen, an office, hose tower and a meeting room and laundry. All of this is available in Fire Hall #1 and would be redundant.

In my recollection, the District of Sparwood has never had to borrow money for this kind of build. When projects have been identified, money has been saved in reserve funds over a number of years and then paid for outright.

No business plan, financial plan or fire service review have been presented for this project. The capital budget was amended at a council meeting on May 4, to approve a loan authorization. Approval would reduce the district’s borrowing capacity should emergencies arise.

In summary, there is no need to rush into the replacement of our Fire Hall #2.

A better choice would be to do a business plan and fire service review, or give the community access to those if they are already done. Once a plan is made reserve funds can be saved and dedicated towards a Fire Hall #2 in Sparwood Heights in the future if it was determined that it is needed.

Having voiced my concern, I want to highlight that none of this is meant to disparage our District of Sparwood firefighters. They are highly skilled, devoted, responsible and an important part of our community. They are also taxpayers who benefit from fiscal prudence for the care and improvement of our community as a whole.

All residents of Sparwood who are eligible to vote have the opportunity to object to the District of Sparwood borrowing $5 million dollars to rebuild the Fire Hall in Sparwood Heights. The district is using a process whereby people need to object to the borrowing and if at least 276 people sign a form, they cannot proceed with the borrowing at that point.

If at least 276 people sign the Electoral Response Form objecting to the borrowing, council can then send the question to a referendum by voting, or simply not proceed. If you own property in Sparwood and live in B.C., you can also sign as a resident property elector.

Electoral Response Forms can be picked up and signed at the District of Sparwood main office, faxed to 250-425-7277 or emailed to [email protected] no later than September 13.

You can follow this link to print out a form.

Lois Halko,

Sparwood

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