Letter to the Editor - The Fire Hall will cost much more than the board says it will
I recently looked at my property tax statements from the years 2007 through 2011 and I was astonished at the increases I saw. The Fire Protection portion of my statement has doubled since 2007 and increased by almost 52 per cent between 2010 and 2011. The GFPID Board attests that it will freeze taxation at the 2011 level.
They do not have to increase our property taxes more to pay for their $4 million-plus fire hall plan because they have already done it.
The GFPID Board claims that their “revised plan” will cost no more than $3.9 million.
The GFPID has spent $300,000 already on planning their $3.9 million fire hall.
The GFPID has collected $1.6 million of our tax dollars already, held in their reserve fund.
The GFPID wants to borrow an additional “up to” $2.3 million to build their $4 million-plus fire hall.
If they borrow $2.3 million at 3.5 per cent interest over a 20-year term, interest would be paid on that loan.
Add up the interest, the money spent as of today, the money collected in the reserve and the money they end up borrowing and you’re well over the $3.9 million they say the hall cost won’t go over.
The Gabriola Ratepayers along with Permasteel have proven that a fire hall could be built for close to $2 million (potentially saving Gabriolans over $2.5 million compared to the GFPID plan).
In fact, James Savage of Permasteel was so confident in Permasteel’s $1.68 million proposal estimate that at the Nov. 27, 2011 meeting he stated the would sign a contract right then for $2 million.
A fire hall could be built and almost entirely paid for with the $1.6 million in the GFPID’s reserve fund and our property taxes could effectively be reduced from what they are now.
~ Drew Staniland