Wednesday, October 22, 2008

SCC Council Candidate Questions Surrey's Spending on Olympics

Surrey Civic Coalition (SCC) City Council candidate Stephanie Ryan wants to know why the City of Surrey had to buy its way into providing the volunteer training centre for the 2010 Olympics. Ryan is a keen supporter of the 2010 Olympics, but believes that the economic times require good fiscal leadership and a view to the city's bottom line.

"The city paid VANOC $2 million for the 'membership privileges' of using the Olympic logo, being a part of the Torch Relay and the Cultural Olympiad, and to have our new recreation centre in Whalley be used for volunteer training before the Olympics," Ryan said.

Ryan questions whether due diligence was used in negotiating the deal.

"Surrey is building a $10.5 million Volunteers Centre for the Olympics at no cost to VANOC, and it's not clear to me why we had to pay a full $2 million on top of that contribution."

She says a fiscally responsible approach in city hall is more important than ever given the forecasts of an economic downturn. She's particularly concerned that the city will find it extremely difficult to find money for improving roads and infrastructure in the coming years, as development slows down in the city as a result of the global credit crunch.

Ryan notes, "Between 75 and 80 per cent of all road and infrastructure improvements in Surrey are paid for through development cost charges (DCCs), and as development slows, the revenue generated from this source will drop dramatically.

"This year, the city found an extra $1.6 million for infrastructure improvements in the form of a road levy. Down the road, we could use that $2 million membership we paid to be a venue city."

Ryan also thinks it was perhaps a poor financial decision on the part of the city to fast-track the volunteers centre building project.

"Fast-tracking a project drives up the cost, and you risk having cost overruns. With a little more planning and foresight, the city may have been able to save more money, which then could have gone towards roads and infrastructure improvements that are so badly needed in Surrey," says Ryan.

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