REGIONAL DISTRICT NORTH OKANAGAN

MEMBER MUNICIPALITIES: ELECTORAL AREAS: CITY OF ARMSTRONG VILLAGE OF LUMBY “B” – SWAN LAKE “E” – CHERRYVILLE

CITY OF ENDERBY CITY OF VERNON “C” – BX DISTRICT “F” – ENDERBY (RURAL) DISTRICT OF COLDSTREAM TOWNSHIP OF SPALLUMCHEEN “D” – LUMBY (RURAL)

FREQUENTLY ASKED QUESTIONS - ALTERNATIVE APPROVAL PROCESS

Vernon Search and Rescue Service Establishment Bylaw No. 2778, 2018; and Vernon Search and Rescue Loan Authorization Bylaw No. 2779, 2018

Background:

Vernon Search and Rescue (VSAR) first began as a division of the Vernon Fish and Game Club in 1960, largely consisting of ex-military outdoorsmen. In 1965 they separated into their own distinct association as donations from the community allowed the organization to acquire equipment to assist in searches. In 1987 they incorporated as a legal Society under the Society Act of BC and were approved as a registered charity. VSAR is staffed by 100% unpaid volunteers, with no remuneration received by any member.

VSAR has been operating since 1984 out of a building on the Regional District of North Okanagan (RDNO) lands located at 9848 Aberdeen Road in Coldstream. Over the years, VSAR has expanded the current building to accommodate manpower, equipment and operations as the organization continued to grow. In 2017, VSAR approached the RDNO to inquire about expanding the current building on the existing site location, which would have required the acquisition of adjacent lands as the building is no longer adequate for their needs. Following an environmental assessment on the lands adjacent to the current VSAR building, it was determined the building could not be expanded onto adjacent lands due to environmental sensitivities identified in the wetlands. At that time, VSAR and the RDNO began discussions on the feasibility of relocating the VSAR to accommodate their growing needs and how this could be accommodated financially.

To raise the funds needed to operate, the VSAR rely heavily on grants and fundraising. The Regional District provides an annual grant of $20,000 to assist with radio licensing, occupancy costs, equipment and training under current Bylaw 1801. It is proposed that the RDNO would continue with the annual grant funding and that the RDNO undertake long term borrowing for the property acquisition and building construction.

VSAR estimates that approximately $1.0 million is required for property purchase and up to $2.5 million for building construction/modification. VSAR’s mandate is to respond to calls in a timely manner no matter the time or weather as professionally, quickly, and safely as possible. The nature of service provided by VSAR would suit a location adjacent to a major thoroughfare in the Greater Vernon vicinity to provide for timely response by their members.

How much is the RDNO asking to borrow?

The RDNO is seeking approval of the electors to borrow up to $3.5 million dollars through Vernon Search and Rescue Loan Authorization Bylaw No. 2779, 2018 which would provide funding to purchase lands and construct a building for VSAR. Only the amount required up to $3.5 million would be borrowed.

Who will own the property and building?

The RDNO will own the property and building and lease back the facility to VSAR at a nominal cost.

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Why is the RDNO proposing to borrow funds for this initiative?

As this is a new service, the RDNO does not have sufficient funds available. The RDNO is seeking approval of the electors through an Alternative Approval Process.

Who will pay?

If adopted, the contributors to the service would be the entire RDNO which consists of: − City of Armstrong − District of Coldstream − City of Enderby − Village of Lumby − Township of Spallumcheen − City of Vernon − Electoral Areas B (Swan Lake/Commonage), C (BX/Silver Star), D (Rural Lumby), E (Cherryville) and F (Rural Enderby) of the RDNO

How much will it cost each participating jurisdiction to borrow the money?

The bylaws propose borrowing up to $3.5 million for a period of up to 20 years. The annual debt payment will be dependent upon the market rates at the time of issuing the debt, which generally occurs once the project is complete. The current market rate is 3.02%. The two most recent MFA debt issues in the spring of 2018 and the fall of 2017 were both at a rate of 3.15%. The following analysis uses a rate of 3.25% to calculate the tax split among jurisdictions and the impact on the average residential property. At 3.25% the annual debt payment is approximately $244,000.

Based upon 2018 converted land and improvements as the basis for apportionment, the expected allocation of the annualized cost of borrowing $3.5 million over 20 years at an estimated interest rate of 3.25% is presented in the table below.

Jurisdiction Assessment Apportionment Tax Requisition ARMSTRONG $ 90,438,697 4.51% $ 11,013 ENDERBY 47,051,386 2.35% 5,730 VERNON 1,066,783,775 53.24% 129,904 COLDSTREAM 266,697,990 13.31% 32,476 SPALLUMCHEEN 110,918,496 5.54% 13,507 LUMBY 33,131,545 1.65% 4,034 ELECTORAL AREA B 110,876,243 5.54% 13,502 ELECTORAL AREA C 116,639,466 5.82% 14,203 ELECTORAL AREA D 51,506,743 2.57% 6,272 ELECTORAL AREA E 15,503,105 0.77% 1,888 ELECTORAL AREA F 94,207,346 4.70% 11,472 $2,003,754,792 100.00% $244,000

What will the annual tax impact be for the average residential property?

The implied residential tax rate required to fund the annual debt payment is 1.2 cents per $1000 of taxable assessment. For the average residential property assessed at approximately $400,000 in the North Okanagan this equates to slightly less than $5 per year.

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What is an Alternative Approval Process (AAP)?

An Alternative Approval Process (AAP) is one method the Board may undertake to seek the approval of the electors on bylaws or agreements that require assent of the electors. The most common example of local governments using an AAP is to undertake long term borrowing.

How does an AAP work?

The AAP (formerly known as counter-petition) is structured so that only eligible electors that sign and submit an Elector Response Form (ERF) back to the RDNO opposing the initiative prior to the deadline. Eligible electors have at least 30 days from the publication of the second notice of the AAP to submit an Elector Response Form (ERF) to the RDNO Corporate Officer during an AAP if they are opposed to the adoption of the bylaws. The number of elector responses required to prevent the Board from proceeding with this initiative unless the Board holds a vote (referendum) is 6,833 or 10% of the estimated eligible electors within the RDNO.

Forms are provided at any of the participating jurisdictions. The deadline for providing ERF’s back to the RDNO is Tuesday, September 18, 2018 at 4:00 p.m.

What if I am in favour of the initiative?

If you are in favour of the initiative you do nothing. By default, if you do not submit a form opposing the initiative it is assumed that you are in support.

Can anyone participate in the AAP?

The only persons entitled to sign and submit an ERF are qualified electors (see below for qualifications) within the City of Armstrong, District of Coldstream, City of Enderby, Village of Lumby, Township of Spallumcheen, City of Vernon, and Electoral Areas “B”, “C”, “D”, “E” and “F” of the RDNO.

There are two (2) types of electors:

1. A resident elector is an individual who is qualified to vote in a jurisdiction by virtue of living (residing) in the jurisdiction. Resident electors signing the elector response form must provide their name and address. To sign an elector response form as a resident elector a person must: − be 18 years of age or older; and − be a Canadian citizen; and − have lived in British Columbia for at least six months immediately prior to signing this Elector Response Form; and − have lived in the City of Armstrong, District of Coldstream, City of Enderby, Village of Lumby, Township of Spallumcheen, City of Vernon, Electoral Areas “B”, “C”, “D”, “E” and “F” of the RDNO for at least 30 days prior to signing this Elector Response Form; and − not be disqualified by any enactment from voting in an election or otherwise disqualified by law.

2. A non-resident property elector is an individual who does not live (does not reside) in the participating service area but is entitled to vote by virtue of owning real property in that jurisdiction. Non-resident property electors must provide their name and the address of the property in relation to which they are entitled to register as a non-resident property elector. Only one (1) non-resident property elector may sign an elector response form per property, regardless of how many people own the property and that owner must have the written consent of a majority of the other property owner(s) to sign the elector response form on their behalf, consent forms are available upon request or from the website at www.rdno.ca. Property owned in whole or in part by a corporation does not qualify under the non-resident property elector provisions. To sign an elector response form as a non-resident property elector a person must: − not be entitled to register as a resident elector in the participating service area; and − be 18 years of age or older; and − be a Canadian citizen; and − have lived in British Columbia for at least six months immediately prior to signing this Elector Response Form; and

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− not be disqualified by any enactment from voting in an election or otherwise disqualified by law; and − have owned property in the City of Armstrong, District of Coldstream, City of Enderby, Village of Lumby, Township of Spallumcheen, City of Vernon, Electoral Areas “B”, “C”, “D”, “E” and “F” of the RDNO for at least 30 days prior to signing this Elector Response Form. • If a property is owned by more than one individual, only one of them may sign an elector response form; • A person may register as a non-resident property elector in relation to one parcel of real property in the service area.

I own a business – can I submit a form?

There is no Corporate Vote – no corporation is entitled to be registered as an elector or have a representative registered as an elector and no corporation is entitled to vote.

Where can I get an Elector Response Form?

The ERF is available for download from the RDNO website at: www.rdno.ca or at the following locations during regular business hours:

City of Armstrong 3570 Bridge Street, Armstrong, BC District of Coldstream 9901 Kalamalka Road, Coldstream, BC City of Enderby 619 Cliff Avenue, Enderby, BC Village of Lumby 1775 Glencaird Street, Lumby, BC Township of Spallumcheen 4144 Spallumcheen Way, Spallumcheen, BC City of Vernon 3400 30th Street, Vernon, BC Regional District of North Okanagan 9848 Aberdeen Road, Coldstream, BC

Note that the only ERF’s that will be accepted by the RDNO are the ones provided by the RDNO or an accurate copy of the form.

Can I submit the form by fax or email?

Yes, however, the form must be completely filled out, signed (no electronic signatures will be accepted) and scanned and sent. If the form is submitted to the RDNO by facsimile or email it is the sender’s responsibility to ensure that the transmission of the form is completed. Forms must be received in the offices of the RDNO prior to the deadline of 4:00 p.m. on Tuesday, September 18, 2018, no exceptions.

Where do I submit the Elector Response Form once I have completed it?

Original, signed ERF submissions will be accepted in person, by mail, fax or email by the RDNO. Forms must be received in the offices of the RDNO prior to the deadline of 4:00 p.m. on Tuesday, September 18, 2018, no exceptions.

Mail: Regional District of North Okanagan 9848 Aberdeen Road, Coldstream B.C. V1B 2K9 Email: [email protected] Fax: 250.550.3709

Submitted forms will not be available to the public.

More Information?

Further information regarding this Alternative Approval Process including elector qualifications is available on our website at www.rdno.ca or by phone 250.550.3700 / 1-855-650-3700 toll free.

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