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.

The City of Nanaimo is seeking the public’s approval to borrow the funds to rebuild the fleet maintenance and crew & administrative buildings. These numbers include allowances for potential inflation and cost overruns – funds that the City will only borrow when needed and if needed.

Find a further breakdown of the funding in the Financing 101 section.

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. With an AAP, instead of heading to the polls to vote on one pre-determined date, there is a window of a minimum 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, move forward with conducting an assent vote (referendum), or fund it through other means such as directly from taxation.

Borrowing for the Public Works Yard Updates Project goes to an alternative approval process (AAP) starting on September 18. Electors who support borrowing for the project do not need to take any action. Electors who are opposed to the proposed borrowing must submit an elector response form by 4:30 p.m. on Thursday, October 31. Further details can be found on the Alternative Approval Process page.

Alternative Approval Process for Public Works Yard Updates

Alternative Approval Process