County passes first reading for multimillion dollar borrowing bylaw

By John Watson Local Journalism Initiative Reporter

Wheatland County council passed first reading for the Goldfinch Raw Water Debenture borrowing bylaw, 2024-07, during the Dec. 17 regular meeting of council. 

The Goldfinch raw water line project received budget approval and successful tendering for $9,750,000 during the Dec. 3 regular council meeting. 

Once completed, the new infrastructure will service the Goldfinch Industrial Area, providing water services in order to facilitate both future industrial and commercial development in the area. 

The borrowing bylaw, should it pass third reading, will provide a substantial portion of the funding to construct the water line in 2025.

“Following approval, the advertising period will commence as required by the municipal government act. This borrowing bylaw and value falls well within the capacity of the county,” said Joel Chiasson, manager of financial services with Wheatland County during the council meeting. “We reviewed during our budget process, the current debt limit calculated in the 2023 audit year was around $52 million.”

Repayment methods for the loan are specified to include revenue generation through levies and fees from users in order to help recover principle and interest costs. 

Chief Administrative Officer Brian Henderson explained general taxation and debt repayments are a requirement of the Municipal Government Act (MGA) to be included in the county’s budget on an annual basis.

He added the county will have to update their fee schedule after third reading of the bylaw is passed.

Following third reading of the bylaw, county administration will seek loan terms and conditions with the Government of Alberta, or another authorized financial body most advantageous for Wheatland County to negotiate with. 

During the meeting, Coun. Glenn Koester inquired whether their intention was to hold a public hearing regarding the bylaw, given the amount of money intended to be borrowed for the construction of the water line. 

“Administration was not intending to hold a public hearing on it, just as it is not required for this type of bylaw. The requirements for a borrowing bylaw would be to have first reading, then advertise for two consecutive weeks, which is why we are getting it done in December, so we can advertise over the closure in the break,” said Henderson. “There is a 30-day window for a petition as well, so if administration does receive a petition on this borrowing bylaw, we would have to notify council regardless, so we are just going to follow the procedure that is outlined in the MGA.”

Koester said the last time Wheatland County did a borrowing bylaw, it was in his division. The county at that time also did not hold a public hearing, and subsequently hosted a meeting in Rosebud in order to explain themselves. 

“I said I would never, ever be party to another borrowing bylaw without a public hearing,” he said. 

In addition to first reading of the borrowing bylaw being passed, county administration was directed to schedule a public hearing prior to discussion on second and third readings.