Town approves infrastructure borrowing bylaw

By Sean Feagan, Local Journalism Initiative Reporter

Strathmore town council approved a borrow bylaw to secure funds for this year’s planned infrastructure projects.

The 2021 Infrastructure Borrowing Bylaw authorizes the borrowing of $1,185,148 to fund infrastructure projects identified in the town’s 2021 capital budget. These include water and sewer line replacements, stormwater outfall improvements at Strathmore Lakes, wastewater system and equipment upgrades at the treatment plant, and the Westmount Drive roadway improvement project.

The bylaw passed first reading on March 3, 2021. Council then passed second and third reading of the bylaw during its regular meeting on April 7 meeting. Both motions passed unanimously, 6-0, with Mayor Pat Fule not in attendance.

Council approved the 2021 capital improvements within the 2021 to 2025 capital budget in November 2020 and approved upgrades at the Westmount Drive and Highway 1 intersection in February 2021.

The Municipal Government Act requires a borrowing bylaw be passed before construction or acquisition of a capital asset that is to be financed by borrowing. The borrowing will be completed this month, using bankers’ acceptances with the Canadian Imperial Bank of Commerce, said Mel Tiede, the town’s director of corporate services, in the meeting. This way, compared to borrowing from the province, gives more flexibility on repayment terms at the same interest rate, he explained.

The loan will be financed over 15 years with a 10-year term. The interest rate is fixed for the first 10 years, so the projected interest rate will be between 2.35 and 2.45 per cent. As of Dec. 31, 2020, the town’s debt utilization was 51.4 per cent of the provincial limit and 46 per cent of the debt serving limit.