HomeMy WebLinkAbout1797-14 Borrowing (County of Newell Water Project)COUNTY OF NEWELL
IN THE PROVINCE OF ALBERTA
BYLAW NO. 1797 -14
BEING a bylaw of the County of Newell (hereinafter referred to as "the Municipality ") in the Province of
Alberta to authorize the Council of the Municipality to incur indebtedness by the issuance of debenture(s)
in the amount of $14,000,000 for the purpose of constructing a rural water distribution system.
WHEREAS:
The Council of the Municipality has decided to issue a by -law pursuant to Section 257 of the Municipal
Government Act to authorize the financing, undertaking and completion of the rural water distribution
system.
Plans and specifications have been prepared and the total cost of the project is estimated to be
$54,000,000.00 and the Municipality estimates the following grants and contributions will be applied to the
project:
Provincial Grants $29,694,431.00
Local Contribution $ 1,905,569.00
Debenture(s) $22,400,000.00
Total Cost $54,000,000.00
Provincial grant funding of $27,000,000 is not expected to be received in its entirety until sometime after
the project is complete which makes interim financing necessary. In order to complete the project it will
be necessary for the Municipality to borrow an additional sum of $14,000,000 over and above. the
$22,400,000 debentures already issued under bylaw 1731 -11, for a period not to exceed 5 years, from
the Alberta Capital Finance Authority or another authorized financial institution, by the issuance of
debentures and on the terms and conditions referred to in this bylaw.
The estimated lifetime of the project financed under this by -law is equal to, or in excess of 50 years.
The principal amount of the outstanding debt of the Municipality at December 31, 2013 is $24,278,145
and no part of the principal or interest is in arrears.
All required approvals for the project have been obtained and the project is in compliance with all Acts
and Regulations of the Province of Alberta.
NOW, THEREFORE, THE COUNCIL OF THE MUNICIPALITY DULY ASSEMBLED, ENACTS AS
FOLLOWS:
1. That for the purpose of constructing a rural water distribution system the sum of FOURTEEN
MILLION DOLLARS ($14,000,000.00) be borrowed from the Alberta Capital Finance Authority or
another authorized financial institution by way of debenture on the credit and security of the
Municipality at large, of which amount the full sum of $14,000,000.00 is to be paid by the
Municipality at large.
2. The proper officers of the Municipality are hereby authorized to issue debenture(s) on behalf of
the Municipality for the amount and purpose as authorized by this by -law, namely the construction
of a rural water distribution system.
3. The Municipality shall repay the indebtedness according to the repayment structure in effect,
namely semi - annual or annual equal payments of combined principal and interest instalments not
Bylaw No. 1797 -14 Page 2
to exceed FIVE (5) years calculated at a rate not exceeding the interest rate fixed by the Alberta
Capital Finance Authority or another authorized financial institution on the date of the borrowing,
and not to exceed FIVE (5) percent.
4. The Municipality shall levy and raise in each year municipal taxes sufficient to pay the
indebtedness.
5. The indebtedness shall be contracted on the credit and security of the Municipality.
6. The net amount borrowed under the by -law shall be applied only to the project specified by this
by -law.
7. This by -law comes into force on the date it is passed.
May 22, 2014 MOVED BY COUNCILLOR C. AMULUNG that Bylaw 1797 -14 receive FIRST
reading. MOTION CARRIED
May 22, 2014 MOVED BY COUNCILLOR T. FYFE that Bylaw 1797 -14 receive SECOND
reading. MOTION CARRIED
May 22, 2014 MOVED BY COUNCILLOR A.M. PHILIPSEN that consent be given for Bylaw
1797 -14 to receive third reading this 22nd day of May, 2014.
MOTION CARRIED
May 22, 2014
MOVED BY COUNCILLOR B. DE JONG that Bylaw 1797 -14 receive THIRD
AND FINAL reading. MOTION CARRIED
Reeve — Molly Douglass
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inistrative Officer— Kevin Stephenson