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City looking to borrow $6 million for capital projects

The city is using the alternative approval process as it seeks permission to borrow funds for two capital projects.

The city is wants to borrow $5,059,683 to replace mobile equipment, including a fire truck. The annual debt servicing costs for borrowing the full amount of $5,059,683 will be $502,434.10 to the General Operating Fund and assumes an interest rate of 3.00 per cent, according to a city report.

It also seeks to borrow $1.1 million to replace a culvert on Kelly Road North (north of Shellbrook Road). The culvert has failed and the road is eroding. The culvert is on a fish-bearing watercourse and requires additional professional design recommendations. The borrowing of the $1.1 million will result in annual debt servicing costs of $79,437 to the General Fund

over 20 years and assumes an interest rate of 3.50 per cent and a sinking fund rate of 3.00 per cent, according to the report.

Residents who oppose the borrowing will have until July 10 to sign an elector response form stating they are opposed. If 10 per cent or more of the total number of electors within the city submit valid Elector Response Forms by the deadline, then council may not proceed with adoption of the bylaw unless approval of the electors is obtained through the “assent of the electors.” In other words, a referendum would then be required to be held on the matter in order for council to proceed to adopt the bylaw.

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