Municipal capital projects are often funded in multiple ways, including through money raised by property taxes, by borrowing and by applying for and receiving grants from other levels of government.
Along with changes to how the province of Alberta funds projects, it looks like one major project in Canmore may have to be funded through a higher level of debt than originally thought in order to move forward this year.
Administration was in front of council last Tuesday (Jan. 21) with a debenture borrowing bylaw for a solids handling upgrade project at the Wastewater Treatment Plant. Originally, the municipality thought it would fund the $3.9 million project through a $2.6 million debenture and a $1.3 million grant.
Manager of finance Katherine Van Keimpema said given the debenture bylaw process takes three to four months and Canmore has a short construction period, administration is putting forward a borrowing bylaw for the whole project just in case the grant doesn’t come through.
“Just because we have a borrowing bylaw we don’t have to borrow, but it does give administration the ability to hit the ground running,” Keimpema.
The uncertainty surrounding the provincial grant includes the fact the province last year changed the rules so projects could not be under construction before grants were approved.
Mayor John Borrowman said that was made clear at the recent Alberta Urban Municipalities Association conference.
“It used to be you could start a project and still be in the queue on grant funding and that has changed,” Borrowman said.
Since the province doesn’t approve its budget until later in March, it challenges municipalities like Canmore that have a short construction season and also means it cannot be out to tender for contractors until a grant is approved under the new rules.
“Ideally, it would be great to have the green light now so we can be competing with contractors… but we recognize grant dollars are significant for this project and there is a desire by administration and council to get outside funding,” said manager of public works Andreas Comeau.
Chief administrative officer Lisa de Soto said Canmore was encouraged to re-submit the project highlighting its regional nature given the recent servicing agreement with the MD of Bighorn for Dead Man’s Flats.
