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Bylaws   Item #
Regular Council Meeting Agenda
C-1143-21 - Support to City Centre Area Redevelopment Plan Borrowing Bylaw - First Reading - Frostad
Strategic Vision Element:
This topic relates to all three of the City’s strategic vision elements contained in Council’s Strategic Plan
Request for Decision Summary
This bylaw will authorize the borrowing of up to $2.4 million for the construction of watermains, sanitary, and storm upgrades in the City Centre area, as approved in the 2021-2023 Corporate Plan.
That first reading be given to Bylaw C-1143-21 - Support to City Centre Area Redevelopment Plan Borrowing Bylaw.
During the 2021-2023 Corporate Plan process, the support to the City Centre Area Redevelopment Plan was approved by Council. The business case proposed the construction of essential infrastructure within the City Centre area to support future development of the City Centre and streetscaping of McLeod Avenue between King Street and Queen Street and redevelopment of Columbus Park. Planned work included watermain, sanitary, and storm upgrades as well as surface restoration plus the installation of conduit for fibre optic infrastructure.
The entire proposed cost of this business case for 2021 is $6.0 million. The approved corporate plan funded this item $2.4 million from utility funded debt, $0.4 million from utility surplus, and $3.2 million from Municipal Sustainability Initiative funds. This bylaw will secure the utility funded debt portion of the business case funding.
If Council chooses not to give first reading to this bylaw, alternative sources of funding would have to be secured to finance the construction of the City Centre watermain, sanitary, and storm upgrades portion of this business case, or the project work may need to be delayed which would require an adjustment to the approved budget for 2021.
In accordance with the Municipal Government Act, this bylaw will be advertised in the February 26, 2021 and March 5, 2021 editions of the Spruce Grove Examiner. A 15 day petition period will follow, ending March 20, 2021.
It is anticipated that second reading will be brought forward for Council's consideration on March 22, 2021, and third reading on April 12, 2021.
Funds will be secured to complete the construction of the City Centre watermain, sanitary, and storm upgrades in 2021.
The City can currently borrow $2.4 million at a rate of 2.092% for a period of 20 years for an annual debenture payment of $147,463 from the Alberta Capital Finance Authority. The borrowing was included in the 2021 budget approved by Council during corporate planning. This bylaw will require a payment structure that begins payments in 2021. These payments were appropriately included in the 2021 budget and will be funded through the Utility.