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2007 Arena Upgrade Project
Phase 1 was completed September 2007 with the financial contributions of Northern Development Initiative Trust, Nechako Kitamaat Development Fund, 2010 Live Sites and the Taxpayers of the Village of Fraser Lake.

We now have: -new flooring in the complex, lobby and stairs - new chiller
-new pipes and sand beds
-concrete flooring in the arena

Proposed Arena Upgrades Passes at Referendum
The residents of the Village of Fraser Lake voted in favour during a referendum to give the Council permission to pass a bylaw to borrow $500,000 to make improvements for the recreation facility.

We will also be applying for grants and donations to help finance these improvements. We will try to accomplish as many upgrades as possible depending on the costs of the essential upgrades and the amount of the grant dollars available. The chiller, the piping and sand bed for the ice surface, and the complex upstairs and curling/complex flooring will be the first items to be dealt with as without those upgrades the building will be unusable in the near future. Other upgrades will be prioritized and accomplished as funding permits.

Borrowing of $500,000 will result in a tax increase for all categories of properties of $1.592 per $1,000 of assessed value. This means that for every $100,000 of assessed value the tax increase will be $159 per year. This increase would begin in 2007 if the borrowing were done in the fall of 2006. This would be for an 8 year period and would show up on your tax notice as a separate line showing the amount you were charged per year.

There have been questions as to why the 8 year term. The municipality must borrow from an agency called the Municipal Finance Authority – they cannot borrow from the bank. If we borrow for 8 years the total payback at $79,264 per year (principal and interest payment) is $634,111. If we borrow for 20 years we would only pay $41,791 per year but would actually pay $835,818 over the life of the loan. I thought an 8 year payback gave us a better deal overall. In addition if we are tied to the recreation facility loan for more than 8 years it limits what we can do financially after that period.

Proposed Water Treatment Upgrades Passes at Referendum
The residents of the Village of Fraser Lake voted in favour of a referendum to give the Council permission to pass a bylaw to borrow $300,000 to make improvements to the water treatment system. We have $105,000 in a reserve fund now plus we have been awarded a grant for $815,000 but we must have ad additional $300,000 of our own money (borrowed is OK) in order to fully qualify for the grant.

Borrowing $300,000 over 8 years will result in an increased water bill of $91 per household/business per year. Additional maintenance costs by this new system will mean a further increase of $96 per household/business per year. The borrowing increase would take effect January 2007 while the increase maintenance would take effect January 2008.

I recommend an 8 year term as the total payback at $47,558 per year would be $380,467 over the 8 years. If we went for a 20 year payback the payment would be $25,074 per year with a total overall cost of $501,490. I thought an 8 year term would give us a better deal overall. After the loan is repaid then the water rates would be reduced again to cover maintenance only.

I was asked what happens to the money left over if the project does not require spending all the funds received from borrowing and the grant. Any excess money would stay in a special reserve fund to be spent on water capital projects only. It would not become part of the money used to finance the day to day costs of the Village.

Questions can also be directed to Donna Ward at the Village office: (250) 699-6257.