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$10M roads borrowing bylaw approved
By Ian Cobb
e-KNOW
City of Cranbrook council last night unanimously approved the borrowing of $10 million to put into city road works.
Council adopted 2017 Capital Road Program Loan Authorization Bylaw No. 3862 following an Alternative Approval Process (AAP) vote, which ran until October 31.
Electors were provided with the opportunity to petition against the bylaw by signing an Elector Response Form. If at least 10% (or 1,499) of eligible city electors had signed the form, council would require assent of the electors in a voting proceeding (referendum) in order to proceed with the borrowing.
The final numbers for the Alternative Approval Process
Total elector response forms received: 814; total opposed – 803; total rejected – seven; total withdrawn – one; total withdraw forms with no elector response forms submitted: three.
“The AAP was good; it did its job,” said Coun. Tom Shypitka prior to the council vote.
“This allows us to begin to deal with our infrastructure deficit,” added Coun. Wesly Graham.
Coun. Ron Popoff noted he is pleased to see the “confidence” of taxpayers but warned that the scale of work to be done to improve city roads will likely mean further borrowing in the future.
“First and foremost this was about the process,” said Mayor Lee Pratt, adding, “We went above and beyond what is required (in an Alternative Approval Process)” to gauge public support. “It was definitely a good move by this council.”
A city Computer Services and Finance Department report says the borrowing should take place next year.
“It is anticipated that the city will participate in the Fall 2017 MFA debenture issue. Debt servicing will commence in 2018 and is estimated to be funded 75% from the General fund resulting in a General fund tax increase of 2.10%; 20% from the Water fund and five per cent from the Sewer fund which will result in a combined increase to the water and sewer parcel taxes of $1.00/metre. The city’s liability servicing limit is $10,755,265 as at December 31, 2015. The 2017 Capital Road Program borrowing will increase debt servicing costs by approximately $695,497 annually. After this new loan, the city’s liability servicing cost will be about 42% of its total available limit,” the report explains.
See $10 million borrowing for roads gets public thumbs up for more.
