Title
Borrowing Bylaw 2019-03 Acheson Zone 4 Reservoir
Proposed Motion
That Bylaw 2019-03 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 November 27, 2018 Council approved the 2019 Interim Capital Budget (RFD 18-275) which included the construction of the Acheson Zone 4 Reservoir. Council also passed a motion approving projects spanning more than one year and this project was included. The cost of the reservoir is not to exceed $6,900,000 and will be accommodated by debt borrowing of $6,900,000. The anticipated interest rate is to be determined but is not to exceed 7 percent over a 25 year term, as outlined within Bylaw 2019-03. The funds borrowed will be recovered through off-site levies.
Administration will use an authorized financial institution 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 2019-03 meets the eligibility requirements of the MGA - Section 258
Guiding Principle 4.1: We are recognized leaders in municipal governance, managing our resources responsibly and sustainably, ensuring we leave a vibrant and resilient community legacy to those that follow us.
Financial Impact:
Cost: $6,900,000
Source of Funding: Debt