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Borrowing approved to rebuild Gold Creek Dam
City of Cranbrook council July 14 adopted Gold Creek Dam Loan Authorization Bylaw No. 4189, 2025 paving the way to the city borrowing up to $10 million to rebuild ageing dam
Council also directed city staff to forward the bylaw to the Inspector of Municipalities for approval and directing the city engineer to have the necessary plans and specifications prepared to proceed with re-construction of the century-old dam.
Effective June 9, the provincial government amended the municipal liabilities regulation and the short-term capital borrowing regulation to give municipalities more flexibility to plan and finance infrastructure projects that support population growth and housing development.
Municipalities can now borrow up to 10% of their annual revenue without having elector approval.
These changes increase municipalities’ ability to borrow without elector approval, but have no impact on overall debt servicing limits. The liability servicing limit remains 25% of the annual calculation revenue as established in the Municipal Liabilities Regulation. The city’s liability servicing limit is $14,329,977 as at December 31, 2023 (most recent certificate).
The Gold Creek Dam construction project borrowing will increase debt servicing costs by approximately $593,713 annually. After this new loan, the city’s liability servicing cost will be about 33% of its total available limit. The debt servicing will be funded from the Water Fund and will result in an increase to the water parcel taxes of $3.3 per metre, or $50.30 annually based on a 15.25 m lot.
The Gold Creek Dam Construction Project involves rebuilding the century-old dam, which has experienced significant structural stress and is beyond its useful life.
The new dam will not only resolve these structural issues but also greatly expand water storage capacity, easing water restrictions, supporting community growth, and enhancing resilience against climate change and natural disasters.
The estimated total cost of the dam replacement project is about $15-million. The city was awarded a $5-million grant thanks to a successful grant application through the Disaster Risk Reduction-Climate Adaptation funding stream of the Community Emergency Preparedness Fund (CEPF). This grant will reduce the amount the city will need to borrow to complete this infrastructure project down to $10 million.
City of Cranbrook photo
