Reservoir project borrowing bylaw approved

Posted on August 8, 2024 by Sunny South News

By Nikki Jamieson
Sunny South News

Coaldale town council has approved a borrowing bylaw for constructing a new reservoir and pump station.

Borrowing Bylaw 894-B-06-24 would allow for the town to borrow funds to allow for the construction of a new water reservoir and pump station, which would create additional storage capacity. The project was previously discussed during the 2024 Capital Budget deliberations, and first reading of the bylaw was passed during council’s regular June 27 meeting.

The water reservoir and pump station project has an estimated cost of $13,038,000. Of that amount, $4,641,971 would be funded through grants, $2,824,779 from offsite levies, $1,101,250 from reserves, and the remaining $4,470,000 would be borrowed. The loan would not exceed a period of 15 years, and not exceed a rate of seven per cent.

As of Dec. 21, 2023, the town’s outstanding debt level is, $17,838,000, and no part of it is in arrears. Kyle Beauchamp, CFO for the town, said the town’s current debt ceiling is about $32 million.

The bylaw was advertised for two weeks in the Sunny South News, and no comments were received by the town for or against the bylaw in time for council’s regular July 15 meeting, were they considered the bylaw for further readings.

According to the bylaw, the lifespan of the new water reservoir and pump station if expected to exceed 50 years. The project was listed as a key priority outlined in the Town’s 2019 Infrastructure Master Plan, and would help ensure the town has an adequate water supply to handle projected growth.

Once built, it would increase the town’s reservoir water storage capacity from 3,400 m³ to 8,300 m³, to meet the town’s anticipated 25-year growth horizon and increasing pump capacity to meet anticipated demands and fire flow requirements for that anticipated growth. Additionally, the location would enhance the town’s current operating abilities, and allows for more flexibility to turnover the reservoir, so that the water supply does not become stagnant and lose chlorine residual.

Council unanimously passed second and third reading of Borrowing Bylaw 894-B-06-24.