City Attempts to Dispel PAC “Myth”

It’s no wonder the public was enraged after hearing the news that the cost for the performing arts center (PAC) had jumped from $154 million to $211 million. 

Many residents unwittingly approved a $140M loan by doing…absolutely nothing. Those that were aware of the AAP and still chose to do nothing, did so with an understanding that the total cost for the PAC was $154 million.

Damage Control

On November 28th, the City added a page to their Let’s Talk site: MYTH: The Kamloops Centre for the Arts is already $45 million over budget and costs are only going to rise.

The first sentence is telling: “FACT: The combined budget of $211 million was just finalized and approved for the Kamloops Centre for the Arts…”. “finalized” tells me that this is a new number, which has not been previously disclosed to the public. “approved” tells me that Council has accepted the cost has increased to $211M, and decided to move forward anyways.

We are told “This is not a matter of being “over budget””. What follows suggests there may not have been a budget at all. If staff didn’t know the cost was going to be $211M, why did they conduct an AAP over a year ago? If staff knew the cost was going to be $211M, why did they tell us $154M when they conducted the AAP? 

Do you feel like you were misled? Do you feel like you were lied to? If you were even aware of the AAP at the time, and you knew the cost was going to be $211 million rather than $154 million, would you have objected to the AAP?

Don’t Worry, We’ve got it Covered

We’re also told “The funding plan is designed to avoid additional borrowing or tax increases and follows the original funding strategy outlined in June 2024, using a mix of debt, reserves, fundraising, and reallocation of existing funds”.

We know about the debt, which is the $140M from the AAP. That leaves $71M to come from reserves, fundraising, and reallocation of funds. We really can’t count on fundraising, and there appears to be little results from that over the last 50 years. So that leaves us with reserves and reallocation.

Let’s Dip Into the Reserves

If reserves weren’t an important part of financial planning, we probably wouldn’t need them in the first place. Since they are important, they have been developed using your tax dollars. If the City smashes those clearly labeled piggy banks and uses the money for other than its intended purpose, we have a problem. Not only is it poor financial management, it creates additional risk until that money is replaced. When it is replaced, it will likely come from your future tax dollars.

Let’s Redirect Existing Funds

Redirecting money that has been allocated for other purposes generally means delaying projects that have been previously approved. One of those projects that may be impacted is the plan to convert the Dallas/Barnhartvale fire station from an on-call model, to fully staffed and full-time. 

Reading the warning from the firefighters gives us a better understanding of this risk: Kamloops Firefighters Warn Delaying Station 6 Upgrades Could Put Public Safety at Risk

Another potential target is policing. In a city where crime and personal safety are our highest concerns, Council continues dragging their heels in keeping up with RCMP recommendations for staffing. I’m not happy having a Council that prioritizes entertainment over safety. Are you?

• Kamloops Violated Spirit of AAP Guide
• Kamloops City Council: Modern-Day Roman Emperors — But with Ice Arenas and Costumes
• Kamloops Council: Amusing Us to Death

A Comparative Financial Scenario

In this example, the numbers are much lower, but probably a lot easier for the average resident to relate to:

• Your spouse asks you to co-sign a loan for a new car
• They tell you it will cost $36,000, and they need a loan for $32,000
• After co-signing the loan, your spouse adds several options costing another $12,000
• When you confront your spouse about the extra $12,000, they tell you not to worry as they took it out of your joint savings
• When you object, they tell you it’s a done deal and there is no way to return the car

Tell me, how is that going to affect your relationship going forward? 

The Bottom Line

The City’s claim ends with “Bottom line: The project is not over budget. The $211 million figure is a combined budget…” and “It is the maximum, risk-adjusted budget, designed to protect taxpayers and deliver a fully realized facility with no additional borrowing or tax increases”.

Dear City of Kamloops and Council, my bottom line is:

• I don’t feel protected
• I don’t trust you
• I don’t believe there will be no more tax increases, especially if those reserve funds are needed before you can replace them
• I think you deliberately misled me in your AAP information
• I don’t think you are acting in the best interest of the citizens
• I want this project halted, and a referendum held to determine if the majority want this 

What Can You Do?