Vernon council will dip into city reserves to help pay for the $136 million Active Living Centre being built on the Kin Race Track property on 43rd Avenue.
Council voted unanimously at its regular meeting Monday, May 27, to come up with $15 million from a number of reserves for additional project funding (Coun. Kari Gares was absent from the meeting).
“This recommendation takes into consideration some of the other matters that council will need to think about during the 2025 budget deliberations, including the Parks Asset Management Plan that was deferred during the 2024 budget deliberations,” said outgoing director of financial services Debra Law, who is retiring in June.
“The remaining 2023 unexpended balance will provide council funding for unbudgeted costs or opportunities that may arise during the year.”
The money will come from the following reserves:
• Growing Communities Fund ($2,945,433);
• Kin Race Track Park Reserve ($5 million);
• RCMP Building Reserve ($1 million);
• Transit Expansion Reserve ($1 million);
• Insurance Proceeds Reserve ($534,740);
• Casino Reserve – 2024: ($1 million);
• Casino Reserve – 2026: ($1 million);
• 2023 Unexpended balance: ($1,519,827);
• 2024 Unexpended balance: ($500,000);
• 2025 Unexpended balance: ($500,000);
Total: $15 million.
Law said in a report to council, administration does not expect to need these funds until 2026, once the long-term debt issues are fully drawn upon.
“As the project progresses, there may be opportunities to reduce the costs of the project, and potentially not need the full $15 million,” said Law.
Administration will review the funding sources for the $15 million both in 2025 and 2026, once the year-end process is complete, to determine the best source of funds annually.
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