Title
Bylaw 2022-04 - Infrastructure Borrowing - Tomahawk Lagoon Renewal
Proposed Motion
1. That Bylaw 2022-04 receive second reading.
2. That Bylaw 2022-04 receive third and final 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 Tomahawk lagoon has reached its end of lifecycle and is due for renewal/replacement. Design and land acquisition were initiated in 2020, and continued to 2021, with construction scheduled for 2023. The cost of the infrastructure is not to exceed $2,172,100 and will be accommodated by debt borrowing. The anticipated interest rate is to be determined but is not to exceed 10 percent over a 20 year term, as outlined in Bylaw 2022-04. The repayment of the indebtedness for infrastructure, plus any interest expenses, is to be funded by the utility rates.
Administration will use an authorized financial institution or organization to facilitate the debt needs.
First reading of the bylaw was given on April 26, 2022. As per the requirement of Section 606 of the Municipal Government Act, advertising of Bylaw 2022-04 was placed in the Friday, May 13, 2022 and Friday, May 20, 2022 editions of the local paper. No valid petitions or public input were received at the time this report was written.
Bylaw 2022-04, 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 2022-04 meets the eligibility requirements of the Municipal Government Act - Section 258
Financial Impact:
Cost: $2,172,100
Source of Funding: Debt