Alternative Approval Process (AAP) 101

Reserves, grants, property taxes, user rates, program fees – there are many different ways that the City pays for the services, programs and infrastructure that keep Nanaimo moving. The largest source of City funding comes from property taxation (set at 62% of the total budget in 2024), and when a large-scale infrastructure project is set to come in with a huge price tag, the City – with the public’s permission - can choose to borrow the funds and spread the cost and repayment out over a long term (up to the lesser of 30 years or the life expectancy of the asset). This greatly lessens the short-term impact of raising property taxes over a few years. Long-term borrowing also shares the costs with future generations that will also benefit.

With our aging Public Works facilities in need of replacement, the City of Nanaimo is seeking the public’s approval to borrow the funds to rebuild the Fleet Maintenance building, retrofit Nanaimo Fire Rescue’s training tower, replace our end of life storm-management infrastructure and ready the yard for future phases of development. Phase one of the overall project could cost up to $48.5 million, with up to $40 million of that ear-marked for a new Fleet maintenance building. These numbers include large allowances for potential inflation and cost overruns – funds that the City will only borrow when needed and if needed.

	Foundational Work	Stormwater Management	Fire Training Fuel Conversion	Beban Park Trail
Construction	$22,000,000	$2,700,000	$775,000	$1,700,000
Project Delivery*	$6,900,000	$540,000	$155,000	$345,000
Allowance for Inflation	$5,800,000	$400,000	$150,000	$250,000
Contingency	$5,300,000	$860,000	$170,000	$455,000
Maximum Borrowing	$40,000,000	$4,500,000	$1,250,000	$2,750,000

* Project Delivery includes costs for design, insurance, third-party utilities (hydro, telephone), permitting, etc.

There are two ways in Provincial legislation that the City can officially seek elector approval to borrow project funds. One is an assent vote (referendum), and the other is through an alternative approval process (AAP). The two processes are very different and used in different situations.

An assent vote (referendum) works much like a general election and costs nearly $300,000. Voters show up on voting day at a predetermined voting location and cast a vote for or against by ballot. This process is typically used for a project that would be considered a nice-to-have; something that would bring value to the community but isn’t considered essential.

An AAP is a very different process, and instead of heading to the polls to vote on one pre-determined date, there is a window of 30 days to respond. Electors in favour of the project don’t need to take any action, while eligible electors opposed to the project must complete and submit an AAP form. If 10% of eligible electors oppose the project, then Council must either abandon the project or move forward with the much more expensive assent vote (referendum). An AAP is used to seek approval from the public for when a project is believed be needed for the well-being of our community.

A functioning Public Works space is essential. Borrowing for phase one of the Nanaimo Operations Centre project goes to an alternative approval process (AAP) starting on January 18. Details on how to oppose the proposed borrowing can be found on the Alternative Approval Process page. The AAP Elector Response Form will be available on January 18, 2024. Opposition to borrowing for the NOC Project needs to be submitted by 4:30pm on Tuesday, February 20, 2024. Electors in support of borrowing for the project don’t need to take any action.

Learn more about the Nanaimo Operations Centre.