7 C
Prince Albert
Tuesday, April 16, 2024
Home News Council to consider new debt bylaw to secure $40-million in loans

Council to consider new debt bylaw to secure $40-million in loans

0
Council to consider new debt bylaw to secure $40-million in loans
Prince Albert City Hall -- Herald file photo.

Prince Albert city council plans to pass a new long-term debt bylaw that would allow the City of secure more than $40-million in loans for five long-term projects.

Three of those projects, the new Aquatic and Arenas Recreation Centre, the new Raw Water Pump House, and the detailed designs for new Waste Water Treatment Plant Upgrade, will be paid back over the next 35 years. The other two, the Marquis Road West Extension and the Waste Cell Construction, have repayment plans spread over 25 years and 10 years respectively.

City finance director Cheryl Tkachuk said she’s confident the City can handle the additional debt.

“I can understand the trepidation with it, because $40-million is a large number,” Tkachuk said on Friday. “However, there has been a lot of thought put forward about how we can afford those payments.”

The new Aquatic and Arenas Recreation Centre will account for the largest chunk of spending, with council proposing a $16-million loan. The bylaw would also allow council to borrow $12.8-million for the Raw Water Pump House, $6.26-million for Waste Cell Construction, $3.4-million for the Marquis Road West Extension, and $2.4-million for the Waste Water Treatment Plant Upgrade Detailed Design. The total cost is around $40,863,000.

Tkachuk said there may be new fees and charges to help pay fund the projects, but no tax increases because of the extra debt.

“It’s a very good plan that’s been made, and these projects are definitely needed,” she added. “There’s no tax increase associated with them, so I believe the residents should feel very good about what council’s doing.”

All projects have other sources of funding beside debt borrowing. The new recreation centre will be funded partially through the civic facilities reserve. Others will benefit from the City’s utility fund, and gas tax funding.

Tkachuk added that the 35-year repayment plan is necessary given the size and cost of some of the projects.

Council will debate the bylaw at their next regular meeting on Feb. 15 at City Hall. Anyone wishing to speak to council about the bylaw is asked to provide a submission to the City Clerk by 4:45 p.m. on Tuesday, Feb. 8.

Residents looking for more information about the requirements to appear can call the City Clerk’s Office at 306-953-4305. They can also go online to www.citypa.ca.

Anyone seeking more information about the proposed amendments can fall the financial services department at 306-953-4332.