Wheatland County approves refinancing of $7.66M Goldfinch water line debt

By Melissa Crispin-Piche Local Journalism Initiative Reporter

Wheatland County is moving a $7.66-million loan for the Goldfinch Raw Water Line from a private bank to the Province of Alberta, a refinancing move expected to reduce interest costs over the life of the debt.

Council gave all three readings to Bylaw 2026-18 during its Sept. 22 meeting, authorizing the county to refinance the remaining $7,661,442 construction loan through Alberta’s Loans to Local Authorities program.

The raw water line, which services the Goldfinch Industrial Park area, has been completed and is now operational. The county originally used construction financing from a private bank so it could draw money as contractor payments came due, rather than borrowing the full amount at the beginning of construction.

Financial Services Manager Joel Chiasson told council that approach saved money during construction. 

“We effectively saved some interest by taking that approach,” Chiasson said. “Now that that’s effectively complete, in doing some comparatives on the interest rates, we found that the provincial rates are more cost effective in locking in that 20-year period.”

According to the council report, the provincial option carries an effective annual interest rate of 4.4893 per cent, compared with 5.43 per cent under the bank option. The county estimates annual debt servicing at $581,975 through the province, compared with $647,675 through the bank. Total projected interest is about $3.98 million through the province, roughly $666,313 less than the bank proposal. 

The county had originally authorized borrowing of up to $7.75 million for construction. Administration said using the construction loan before converting the debt to a long-term debenture also produced roughly $150,000 in interest savings. 

Coun. Berle Hebbes asked how repayment would be divided between existing and future users of the line.

Chiasson said the original infrastructure planning included anticipated development and tax benefits, and estimated a six- to seven-year payback period for the broader infrastructure investment. The refinanced loan itself will be amortized over 20 years.

“It’s a standard amortization just like it would be for a mortgage, equal payments,” he said.

Under the bylaw, levies or fees charged to Goldfinch Raw Water Line users are intended to pay the principal and interest. If those revenues are insufficient, the bylaw allows the county to raise municipal taxes to cover the shortfall. 

The bylaw passed first and second reading before council unanimously agreed to consider third reading at the same meeting. Third and final reading was then carried.

The county can now apply to the provincial loan program to replace the bank financing.