Title
Borrowing Bylaw 2018-24 Entwistle Pool and Community Hub
Proposed Motion
That Bylaw 2018-24 receive first reading.
Body
Administration Recommendation
Administration supports the proposed Bylaw as presented.
Purpose
To comply with Sections 251 and 258 of the Municipal Government Act (MGA) that require Council to pass a bylaw to facilitate long-term borrowing of funds.
Summary
On May 8th, 2018 Council approved the design and construction of the Entwistle Pool and Community Hub (RFD 18-079). Council also passed a motion directing administration to bring forward a borrowing bylaw in the amount of $5,300,000 at the May 22, 2018 Council meeting. The cost of the infrastructure is not to exceed $9,300,000 and will be accommodated by debt borrowing of $5,300,000 and restricted surplus funds of $4,000,000 (also approved by Council at the May 8th, 2018 meeting). The anticipated interest rate is to be determined but is not to exceed 7 percent over a 25 year term, as outlined within Bylaw 2018-24. The funds borrowed will be recovered through municipal taxation.
Administration will use an authorized financial institution and/or an Alberta Capital Finance Authority Debenture to facilitate the debt needs.
The Bylaw, 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 2018-24 meets the eligibility requirements of the MGA - Section 258
Guiding Principle 1.1: We offer a range of lifestyle choices, community services, and other amenities to meet community needs.
Financial Impact:
Cost: $5,300,000
Source of Funding: Debt