A commentary by a former member of Victoria city council.
The City of Victoria is being somewhat less than transparent regarding the proposed Crystal Pool replacement project. And the so-called “choice” of sites is misleading.
The real debate should be about whether we can afford a $215 million “people’s palace.”
But the question goes far beyond this, given that budget projections call for tax and utility charge increases that will require ongoing rises in city operating costs of 8.3 per cent per year. Reserves will be drawn down by $47 million to reduce borrowing to $166 million. There is a legal requirement to maintain a set level of contingency reserves.
What will be the pool’s effect on the city’s capital reserve account? To what extent can we rely on future development cost charges to replenish Victoria’s reserves?
According to internal reports, $700 million is required to update aging infrastructure over the next 20 years and the city is exposed to a further risk of up to $2.3 billion in costs, which have not yet been subject to detailed estimates.
A recent report to council said the city has about $48.96 million in outstanding debt and the authorized debt servicing is about 7.5 per cent of the prior year tax levy. If the Crystal Pool replacement is approved, the related debt would increase the total servicing to 15.5 per cent of the prior year tax levy.
There has been no public discussion as to how a new Crystal Pool stacks up against other items on the public amenity wish list. For instance, the new central library was promised 20 years ago.
Or cost-sharing requests for a new downtown art gallery and maritime museum.
Upgrades to the Bastion Square historic courthouse for a community arts hub, a downtown neighbourhood community centre, social housing initiatives, a new urban park, new arts performance spaces or even completion of the harbour-front plan after 30 years of dithering.
Current planned capital expenditures need a serious rethink.
Vanity projects such as Centennial Square should be scaled back to a simple clean-up and repair.
The Crystal Pool project should be rigorously reassessed for affordability. Perhaps alternatives such as a seismic upgrade and community centre addition would suffice.
A 20-year capital works project budget should be articulated. This should provide costs, options and timing for capital works that meet the social and cultural needs of the region’s rapidly growing core-city population.
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