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October 28, 2020 October 28, 2020

Town looking to borrow around $2 million

Posted on August 5, 2020 by Taber Times

By Trevor Busch
Taber Times
tbusch@tabertimes.com

The Town of Taber intends to borrow close to $2 million to help fund its Highway 864 Intersection and 56th Avenue Extension Project.

Town council discussion surrounding the project began as early as December 2017, when Coun. Jack Brewin had expressed interest in eventually finishing the thoroughfare if more traffic was anticipated in the area based on the installation of traffic lights at the intersection of Highway 3 and Highway 864 in 2018. The project will extend 56th Avenue from its current western terminus near 43rd Street to an intersection with Highway 864.

On Feb. 24, 2020 council awarded the Highway 864 Intersection and 56th Avenue Extension to McNally Contractors for $3,169,621.36 (inclusive of GST), with the town’s contribution of $2,474,932.80. Funding for the project was to be allocated from MSI ($690,584) and a debenture not to exceed $1,942,744.50.

“In order to complete the project it will be necessary for the Town of Taber to borrow the sum of $1,930,000, for a period not to exceed 20 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 the attached bylaw,” reads a statement from administration’s background to the decision at council’s July 20 meeting.

The estimated annual payments for the loan would be approximately $117,922.78.

Following discussion on July 20, council voted unanimously to pass first reading of Long Term Borrowing – 56th Avenue Road Extension Project Bylaw 15-2020.

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