Borrowing bylaw could see town at 66.6% debt limit

Times Reporter

 

Included in the December budget was a provision to borrow funding for the potable water reservoir. The amount to be borrowed is $3,120,000, and it is anticipated the project will cost around $9 million. 

It’s anticipated the amount will be borrowed in June from the Alberta Capital Finance Authority, whose present rates are for a 15-year term at a 2.663 per cent fixed rate.

If the funds are borrowed, the town will be at 66.6 per cent of its debt limit. The project could potentially come in higher or lower than the estimated $9 million. Tenders have been issued for the project and will be closing on March 12. 

Councillor Best is concerned about having a floating figure and wanted to wait until after the tenders come in before approving the motion.  

Mel Tiede, director of corporate services for the town, explained that the town is not obligated to borrow the full amount, but can borrow up to that amount. If the project were to come in at  $1 million more, then the town would either have to find the additional funds from reserves, borrowing or grants, but Tiede said borrowing is not the only option.

The reservoir is needed to bring the town’s potable water storage increase to approximately four days in the case of an emergency. 

First reading was given to the borrowing bylaw, with Councillor Best opposed, and will be heading to a public hearing in April.  

 

Memorandum approved by town, county 

A Memorandum of Understanding was approved for a joint emergency operating centre between the town of Strathmore and Wheatland County. It’s for a three year term and Linda Nelson, Deputy Chief Administrative Officer for the town, said the agreement is basically for where a requesting party may request assistance from a supplying party in the event of a disaster or emergency situation. The requesting party, however, cannot activate its own emergency operating centre, and there is a limitation clause where the supplying party can, by its absolute discretion, refuse to render assistance. 

 

Names advisory committee 

Council approved the name Grandview Gardens for the area immediately northeast of Strathaven. The name came from actually standing on the property and realizing it is a ‘grand view,’ said Councillor Earl Best. The family name Sorenson was proposed for future use and has been placed in the names reserve list.