Title
Bylaw No. 2015-26, Debenture Borrowing for Acheson Storm Water Outfall - Sections 1 through 5 and Section 9
Proposed Motion(s)
That Bylaw No. 2015-26 receive first reading.
Body
Administration Recommendation
Administration supports the proposed Bylaw as presented.
Purpose
Bylaw No. 2015-26 is a requirement of the Municipal Government Act (MGA) to facilitate long-term borrowing of funds. Section 251(1) of the MGA specifically states "A municipality may only make a borrowing if the borrowing is authorized by a borrowing bylaw". Furthermore, Section 258 identifies the conditions to be met to facilitate long-term borrowing by a municipality. This Bylaw is intended to be in compliance with Sections 251 and 258 of the MGA.
Summary
Council has approved the 2015 Capital Budget which includes funding for the Acheson Storm Water Outfall. The approved budget identifies an amount of $22,220,700 to be accommodated by "debenture" borrowing. The total project cost is estimated at $28,220,700, which includes the debenture borrowing amount plus an additional $6,000,000 from off-site levies. For the project, Sections 1 through 5 and Section 9 will be funded from the debenture borrowing bylaw, as attached. Sections 6 through 8 will be funded using off-site levies. The anticipated interest rate is to be determined but is not to exceed 10 percent over a 15 year term, as outlined in Bylaw No. 2015-26. The repayment of the indebtedness, including any interest accrual, is to be managed through the collection of off-site levies as development within the Acheson Area Structure plan progresses. In the event that the amount of levies collected are not sufficient to pay the indebtedness, it may become necessary to pay the indebtedness using available Municipal Sustainability Initiative (MSI) Grants, other applicable Capital grants and/or Restricted Surplus as an interim financing measure. Once collected levies are sufficient to continue to apply to payment of the indebt...
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