Expect a tax increase in Lake Country as district moves forward with rail-trail purchase

LAKE COUNTRY, B.C. – The District of Lake Country is one step closer to approving funding for the portion of rail trail corridor which runs through its jurisdiction. The district gave three readings to the Loan Authorization Bylaw Tuesday night, which if approved, allows for the borrowing of $2.6 million dollars to be paid back over the next 20 years.

The City of Kelowna fronted $22-million for purchasing the stretch of rail which runs from Vernon to Kelowna, with the other jurisdictions on the hook to pay the city back. Lake Country’s share is roughly $5.1 million.

READ MORE:  Okanagan Rail Trail cash — who pays what

“Many funding options for purchasing the discontinued CN rail corridor have been explored, including partnerships, grants, municipal reserves and/or borrowing,” says Michael Mercer, Director of Engineering & Environmental Services. “Each of the local governments involved is making every effort to minimize the current tax impact while securing a land asset that will be valued for generations.”

If, (more likely when), the bylaw is given the green light, it will mean a property tax hike if you’re living in Lake Country. According to the district, the average $475,000 home will see taxes rise by approximately $27 per year.

“If fewer than 10 per cent of electors object, funds will be borrowed through the Municipal Finance Authority and will be paid back over a 20-year term,” says corporate services manager, Reyna Seabrook.

If you are opposed to the bylaw and an eligible voter in the district, you can fill out an elector response form on the District of Lake Country’s website or at Municipal Hall. You have 30-days to contest the bylaw’s approval.

The $2.6 million makes up roughly half of Lake Country’s price-tag for the land. Lake Country and Kelowna have an agreed Memorandum of Understanding that the district will pay back the City of Kelowna in full, but there’s no set timeline on when. According to Lake Country Mayor James Baker, the rest of the money will be collected over time through fundraising, grants and potentially from district reserves.

Barring any changes, council will seek final approval of the bylaw Feb. 23.