Castlegar City Council has approved using the Alternative Approval Process (AAP) method to seek elector approval for long-term borrowing of $1.38 million to cover the city's share of the West Kootenay Regional Airport Apron Rehabilitation and Taxiway Extension project.
The loan will come from the Municipal Finance Authority and be repaid within 30 years. Debt repayments are intended to be covered by airport user fees including passenger facility fees, vehicle parking fees, terminal and airside rental revenue, and landing fees.
The need for approval from Castlegar residents was triggered because the Community Charter allows for a municipality's debt servicing liability to reach five percent of its "controllable and sustainable municipal revenue" without needing elector approval. Once the total annual cost of servicing liabilities exceeds the five-per-cent approval-free limit, all subsequent borrowing must receive elector approval.
This loan will tip the city over the five-per-cent margin.
The alternate to AAP is a referendum vote, which would take longer and cost taxpayers about $30,000. IN addition, the diversion of staff time would mean that other city projects would have to be delayed or re-prioritized.
Rather than an election-style referendum where people cast actual votes for or against, the AAP requires residents to voice only their opposition to the borrowing by submitting Elector Response Forms.
If 10 percent or more of eligible electors sign and submit response forms, local governments cannot proceed with the proposed matter without first holding an assent vote. For this AAP, the threshold for failure is 632 opposition forms.
Elector Response Forms are due by Nov. 12.
The project's total budget is $5.37 million. The majority of the funding is coming from grants including $2.36 million from Transport Canada’s Airport Capital Assistance Program and $1.66 million from the BC Air Access Program.
The city says this project will significantly enhance the airport’s capacity by accommodating larger aircraft and enabling simultaneous aircraft operations, improving operational efficiency and runway safety. It also supports long-term growth and economic potential and is expected to boost commercial aviation and tourism while enhancing overall reliability for travellers.
For more information on the Alternative Approval Process, visit castlegar.ca/aap.
