Council is backing a borrowing bylaw for the $4.39 million needed to construct a new water treatment facility.
The temporary borrowing bylaw was given third reading by council, authorizing the district to borrow up to $4.39 million for build the facility, estimates to cost $7,92 million. The B.C. and federal governments are contributing $3 million towards the project.
Coun. Suzanne Carpenter said the bylaw will allow the district to borrow only what it needs, when needed. District chief financial officer Kelly Bennett confirmed this, stating the bylaw will allow the district to borrow in “chunks” through the Municipal Financing Authority.
“If we only need $500,000, and then another million, we can borrow it in chunks and we’re only paying interest on those chunks. And once the project is all completed, then we flip it into long-term borrowing,” explained Bennett. “That’s what this bylaw is doing, it’s allowing us to borrow on a short-term basis.”
Carpenter called this an excellent approach.