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Canmore considers $7.6M in new borrowing

CANMORE – Canmore council took the first step towards borrowing $7.6 million to help pay for five capital projects approved in the 2019 and 2020 capital budgets.
Canmore-Council-702×478
RMO FILE PHOTO

CANMORE – Canmore council took the first step towards borrowing $7.6 million to help pay for five capital projects approved in the 2019 and 2020 capital budgets.

Council unanimously approved the first reading of the five borrowing bylaws on Tuesday (Jan. 8.)

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.

“After the new debentures are committed, we will have taken 41 per cent of the available debt limit in 2020 and the Town’s internal policy is 70 per cent, so we are well within our limits,” said Carla Reinhardus, acting manager of financial services

According to a staff report, 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 also wants to 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.

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, $165,000 from provincial grants and $295,000 from the Town’s solid waste service reserve.

The Town would also like to 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 is also hoping 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.

After a two-week advertising period the public will have a 15-day petition period ending on Feb. 1. Council is expected to pass second and third reading of each borrowing bylaw on Mar. 5.

Because all the new debt is directly related to solid waste services, or water and wastewater utilities, repayment is factored into the fees charged for each municipal service and does not require an increase to municipal property taxes.

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