CANMORE – The Town of Canmore will borrow $7.6 million to help pay for five capital projects approved in its 2019 and 2020 capital budgets.
Council unanimously approved second and third reading of the five borrowing bylaws during its regular business meeting on Tuesday (March 5).
The projects include money for the Town’s new organics diversion program, replacement of a lift station, construction of a water main, upgrades to several wastewater mains and improvement to the water pressure along Bow Valley Trail to meet firefighting requirements.
Carla Reinhardus, acting manager of financial services, said the interest rates to borrow the money will vary depending on when the debenture is drawn, however as of Dec. 11 the interest rate was 3.27 per cent, but could reach a maximum interest rate of seven per cent.
“The debt is not actually taken upon approval of the bylaw, which is why we have the variable interest rates. The debt is taken closer to the project completion,” said Reinhardus, adding each debenture will be repaid over 15 years.
After these debts are taken, approximately 13 per cent of the Town’s total debt will mature within the next 10 years, well below the 50 per cent maximum set out in council’s debt management policy.
The largest debenture needed is $3.5 million to help build a new feeder main connecting the Three Sisters area adjacent to the wastewater treatment plant to the south end of Bow Valley Trail. The feeder main will tie the west and central areas of town together, which will provide a secure water supply to downtown Canmore.
The total cost of the project is estimated at $4.2 million with the remaining $680,000 coming from offsite levy reserve funding sources.
The Town will also borrow $1.3 million to establish an organics diversion program, including a pilot project for residential food waste and a fully funded commercial food waste program in 2019.
The project is expected to cost a total of $2.9 million. To cover the remaining costs the Town will use $70,000 cash in lieu of bear bins, $1 million in capital from the Municipal Sustainability Initiative reserve, $165,000 from provincial grants and $295,000 from the Town’s solid waste service reserve.
The Town will also borrow $1.3 million to upgrade the wastewater mains along Bow Valley Trail, as outlined in the 2016 utility master plan update. The area of focus includes Second Avenue from Hospital Place and 15th Street and from the Railway Avenue intersection to Sidney Street.
The total cost of the project is estimated to cost $1.4 million with the remaining $100,000 coming from the wastewater utility reserve.
The Town intends to borrow $900,000 to replace lift station six, which will also include the addition of a flow monitor and increase the pump’s capacity. The total cost of the project is estimated at $1 million with the remaining $100,000 coming from the wastewater utility reserve.
The final project will require the Town to borrow $550,000 to improve the water pressure along Bow Valley Trail to meet fire flow requirements. The total cost of the project is estimated to cost $600,000 with the remaining $50,000 coming from the water utility reserve.
Because all the new debt is directly related to solid waste services, water and wastewater utilities, repayment is factored into the fees charged for each municipal service and did not require an increase to municipal property taxes.
