Water Reservoir Borrowing Bylaw discussed

By John Watson Local Journalism Initiative Reporter

Town of Strathmore council passed first reading for Bylaw 25-03, being the Water Reservoir Borrowing Bylaw, during the Jan. 22 regular meeting.

Riley Brolly, manager of financial planning, budgeting and reporting with the Town of Strathmore, explained the Water Reservoir Borrowing bylaw is an administrative requirement to ensure the town’s compliance with the Municipal Government Act.

“When council approved the 2025-2034 Capital Budget on Dec. 4, 2024, the largest capital project was the Wildflower Water Reservoir upgrade in the amount of $5.45 million over two years – most of it this year, and $150,000 in 2026 which was approved to be financed by debt sources,” he said. “We recommended this and council approved it because these upgrades exceed what is available to draw from reserves or to fund with incoming or expected grants.”

Brolly added borrowing funds for this project will allow both current and future taxpayers to contribute to the cost of the water reservoir upgrades.

Bylaw 25-3 authorizes town administration to obtain a loan at no higher than 5.5 per cent annually on a 25-year term.

The interest rate on a 25-year loan from the Province of Alberta is 5.28 per cent, which represents an annual debt servicing cost to the town of $395,000 annually on the loan, of which the funds to repay the loan must be levied on local taxpayers.

“The capital expenditure itself and the debt servicing on it is (already) factored into the (2025) budget,” Brolly clarified.

The Town of Strathmore plans to decommission the Brentwood Reservoir, as well as to expand and complete the Wildflower Reservoir in order to allow it sufficient capacity to operate as the sole drinking water reservoir for the Town of Strathmore.

Renovating the Wildflower Reservoir, as well as decommissioning the Brentwood Reservoir have been subjects of the town’s attention for several years, as the latter nears the end of its service life. 

The Wildflower Reservoir was noted in October 2024 to be operating at its maximum capacity, while the Brentwood Reservoir was noted to operate at approximately 50 per cent capacity.

An Alberta Municipal Water and Wastewater Partnership grant is a resource which the town has previously applied for on multiple occasions. No mention of a successful application was noted on council’s meeting agenda, nor was it discussed during the Jan. 22 meeting.

“I am very excited about this – I know that water is a scarce resource. Obviously, this is the thing that we most need to be focusing our attentions on,” said Coun. Brent Wiley.

Council has directed administration to advertise the drafted bylaw in accordance with policies in the Municipal Government Act prior to second reading.

Any questions or concerns regarding the bylaw must be returned before council within 30 days of second and third reading, which are to take place in February.

Following approval of the bylaw, the town anticipates to receive funds approximately by September.

(With files from Nov. 30, 2022, Oct. 16, 2024 editions of the Strathmore Times)