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HomeMy WebLinkAbout1542-05 Debenture Bylaw - Lake Newell SewerCOUNTY OF NEWELL NO. 4 BYLAW NO. 1542-05 A BYLAW OF THE COUNTY OF NEWELL NO. 4, IN THE PROVINCE OF ALBERTA, TO AUTHORIZE THE COUNCIL OF THE COUNTY OF NEWELL NO. 4 TO INCUR AN INDEBTEDNESS BY THE ISSUANCE OF DEBENTURE(S) IN THE AMOUNT OF $702,907.04 FOR THE PURPOSE OF THE "LAKE NEWELL RESORT SEWAGE LIFT STATION & SANITARY FORCEMAIN" LOCAL IMPROVEMENT PROJECT. WHEREAS, the Council of the County of Newell No. 4 has decided to issue a bylaw pursuant to Section 263 of the Municipal Government Act to authorize the financing, undertaking and completion of the "Lake Newell Resort Sewage Lift Station & Sanitary Forcemain" local improvement project as described in the local improvement plan authorized by council. Plans and specifications have been prepared and the total cost of the project is estimated to be $1,302,907.04 and the County of Newell No. 4 estimates the following contributions will be applied to the project: 1) Infrastructure Canada-Alberta Program (ICAP) Conditional Grant: $ 600,000.00 2) Benefiting Owners (Revenue raised by local improvement tax): $ 702,907.04 TOTAL COST: $1,302,907.04 In order to complete the project it will be necessary for the County of Newell No. 4 to borrow the sum of $702,907.04, for a period not to exceed TEN (10) 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 bylaw is equal to, or in excess of TEN (10) years. The principal amount of the outstanding debt of the County of Newell No. 4 at December 31, 2004 is $9,133,959 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 County of Newell No. 4 duly assembled, enacts as follows: 1. That for the purpose of completing the "Lake Newell Resort Sewage Lift Station & Sanitary Forcemain" local improvement project the sum of SEVEN HUNDRED & TWO THOUSAND NINE Bylaw No. 1542-05 Page 2 HUNDRED & SEVEN DOLLARS AND FOUR CENTS ($702,907.04) be borrowed from the Alberta Capital Finance Authority or another authorized financial institution by way of debenture on the credit and security of the County of Newell No. 4 at large. 2. The amount of SEVEN HUNDRED & TWO THOUSAND NINE HUNDRED & SEVEN DOLLARS AND FOUR CENTS ($702,907.04) is to be collected by way of local improvement tax imposed pursuant to the County of Newell's tax Bylaw No. 1541- 05. 3. The proper officers of the County of Newell No. 4 are hereby authorized to issue debenture(s) on behalf of the County of Newell No. 4 for the amount and purpose as authorized by this bylaw, namely the "Lake Newell Resort Sewage Lift Station & Sanitary Forcemain" local improvement project. 4. The County of Newell No. 4 shall repay the indebtedness according to the repayment structure in effect, namely annual or semi-annual equal payments of combined principal and interest installments not to exceed TEN (10) 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 TEN (10) percent. 5. The indebtedness shall be contracted on the credit and security of the County of Newell No. 4. 6. The net amount borrowed under the bylaw shall be applied only to the project specified in this bylaw. 7. This bylaw comes into force on the date of final reading. Sept. 22, 2005 Moved by Councillor Eckert that Bylaw No. 1542-05 receive first reading. Sept. 22, 2005 Moved by Councillor Vermeeren that Bylaw No. 1542-05 receive second reading. Sept. 22, 2005 Moved by Councillor Philipsen that consent be given to proceed with third and final reading of Bylaw 1542-05. Sept. 22, 2005 Moved by Councillor Eastman that Bylaw No. 1542-05 receive third and final reading. f ~° Reeve ~~~ __~ County Administrator