Residents in Kamloops aren’t expected to see any tax increases, if the city goes ahead and borrows $45 million for the new Performing Arts Centre.

Corporate Services Director Kathy Humphrey says its because a lot of the city’s current debt on the Tournament Capital Centre is close to being paid off in full.

“So we are able to then take on some new and additional debt and basically the payments that we were making on the old debt just would become the payments on the new deb,” she said.

“If you have a car payment and you work four or five years to payoff your car, and then you take those car payments and decide to do a renovation in your house. Basically, shift what you were paying on one loan to paying a new loan.”

Humphrey adds the city would not be borrowing the money in full until the project is complete.

“So we would potentially do some short term cash flow borrowing from them for a couple of years if we needed it. It would really depend on the money that was needed to pay out the contractors and stuff who are building it,” she added. “But really, it would probably be 2024 before that debt would actually require payments from the city.”

And she says, the city has set $45 million, in addition to at least $22 million in sponsorships and other donations, plus a $3 million donation from Ron and Rae Fawcett.

“We have to set an upper limit. So at this point our recommendation to council is that it would be up to $45 million,” Humphrey said. “Our goal is actually that it comes in less than that based on grants and fundraising and sponsorships that the Society and the City combined are able to get.”

Humphrey says the city would take 25 years to pay off the debt for the Performing Arts Centre, with the first payment due in 2024.