FACT: Delays or cancellations increase financial risk and cost exposure, not the opposite.

The greatest financial risk is breach of contract and project cancellation, potentially triggering a significant onetime tax increase. In those situations:

• The City must fund all incurred costs
  
• The budget must be corrected immediately the following year as the City cannot run a deficit.
  
• Exposure could exceed $20M in a single year, before legal fees
• Taxpayers pay without receiving the intended assets or services, as long-term borrowing must be connected to an asset (i.e. you can’t take out the mortgage if you don’t have the house as security).

Based on conservative assumptions, the potential additional cost from delaying these projects for one year equate to:

• Kamloops Centre for the Arts: ~$28.39M
  
• Arena Multiplex: ~$10.46M

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