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Bylaws   Item #
Regular Council Meeting Agenda
C-1143-21 - Support to City Centre Area Redevelopment Plan Borrowing Bylaw - Third Reading - Frostad
Strategic Vision Element:
This topic relates to all three of the City’s strategic vision elements contained in Council’s Strategic Plan
Spruce Grove has a robust, growing economic base that generates increased revenues to support the City’s high standards for services and programs.
Request for Decision Summary
Third reading of Bylaw C-1143-21 - Support to City Centre Area Redevelopment Plan Borrowing Bylaw is being brought forward for Council's consideration. This bylaw will authorize the borrowing of up to $2.4 million for the construction of watermain, sanitary and storm upgrades in the City Centre area, as approved in the 2021 - 2023 Corporate Plan.
That third reading be given to Bylaw C-1143-21 - Support to City Centre ARP 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 the 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 the business case is $6.0 million. The approved corporate plan funded the utility work of $2.4 million from utility funded debt, $0.4 million from utility surplus with the remaining construction costs funded by Municipal Sustainability Initiative funding. This bylaw will secure the utility funded debt portion of the business case financing.
If Council chooses not to give third reading to this bylaw, alternative sources of funding would have to be secured to finance the construction of the City Centre area 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 was given first reading on February 22, 2021, and advertised in the local newspaper on February 26, 2021 and March 5, 2021. The fifteen day petition period ended on March 20, 2021, and second reading took place on March 22, 2021.
The initiating of the borrowing itself will be pending the finalization of the construction schedule for the planned utility work.
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 and 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 commences in 2021. These payments were appropriately included in the 2021 budget and will be funded through utility surplus.