By Trevor Busch
Town council has given first reading to a plan to borrow $1.1 million to complete multi-million dollar upgrades to the town’s industrial lagoon system.
At their Nov. 28 regular meeting, town council voted unanimously (6-0) to pass first reading of Long-Term Borrowing Bylaw 22-2016, which pertains to the Taber Industrial Lagoon Project. Coun. Jack Brewin was absent from the meeting.
Plans and specifications have been prepared and the total cost of the project is estimated at $5,715,000. Grants and contributions applied to the project include $850,000 from capital reserves and $3,765,000 in provincial grants, which leaves a shortfall of $1.1 million.
According to administration, in order to complete the project it will be necessary for the Town of Taber to borrow $1.1 million, for a period not to exceed 20 years, from the Alberta Capital Finance Authority or another authorized financial institution, by the issuance of debentures subject to certain terms and conditions.
Estimated annual payments on the loan will be approximately $70,000. According to administration, the estimated savings in electricity costs for completing the project would be approximately $70,000, offsetting the loan payments for the debenture.
Finance director and acting CAO Devon Wannop noted a complicated process of public notice and advertising are required before the town can move forward with a borrowing process.
The project is anticipated to have an April 2017 start date.