Title
Bylaw 2021-05 Infrastructure Borrowing - Walker Lake Water Loop
Proposed Motion
That Bylaw 2021-05 receive first reading.
Body
Administration Recommendation
Administration supports the proposed motion.
Purpose
To comply with Sections 251 and 258 of the Municipal Government Act that require Council to pass a bylaw to facilitate long-term borrowing of funds.
Summary
The Walker Lake Water Loop project was identified in the 2015 Water Servicing Plan for the Acheson and Big Lake area. This connection provides a secondary connection into the Big Lake area which can be critical during water servicing operations or during emergency repairs due to a water main break. The cost of the infrastructure is not to exceed $1,800,000 and will be accommodated by debt borrowing. The anticipated interest rate is to be determined but is not to exceed 7.0 percent over a 25 year term, as outlined in Bylaw 2021-05. The repayment of the indebtedness for the levy-able infrastructure, plus any interest expenses, is to be managed through the collection of off-site levies as development within the benefiting area progresses.
Administration will use an authorized financial institution and/or an Alberta Capital Finance Authority Debenture to facilitate the debt needs.
Bylaw 2021-05, if approved, will fulfill the terms and conditions represented within the Municipal Government Act for long-term borrowing.
Strategic Plan/Policy/Legal/Staff Implications
Bylaw 2021-05 meets the eligibility requirements of the Municipal Government Act - Section 258
Financial Impact:
Cost: $1,800,000
Source of Funding: Debt