This would require the municipality to borrow money from an approved financial institution. However, prior to being able to do this a borrowing bylaw must first be passed.
The proposed loan would not be able to exceed a period of 10 years. And if the bylaw is passed, as of Dec. 31, 2013 the town of Raymond will owe $2,525,917.70. No part of the principal amount will be located in either interest or arrears.
“The hope is everything will go forward. If for some reason it doesn’t pan out, we won’t do the debenture,” said Coun. Barry Wolsey of the financial obligation.
All necessary, required approvals for this particular project have been obtained and the project is in compliance with the acts, rules and regulations of Alberta. The overall cost of the project is expected to be $3,925,000 – including the recently proposed FCSS component.
Some donations and financial support have already been received. The Westwind School Division donated $300,000, two provincial grants were received, one from Alberta Infrastructure for $500,000 and one from the Facility Enhancement Program for $125,000 and some community fundraising, totaling $500,000, when all is said and done.
“There hasn’t been any direct commitments (as far as community fundraising goes), however we have received a fair bit at this point. We are not near $500,000 – but it includes grants from Farm Credit Canada – who gave us $10,000. And Lethbridge Community Futures Foundation has given us around $6,000, Wayne Smith at the Pharmacy gave us $10,000 and the $25,000 from TSN/Kraft Canada – we will just continue to add that up and the hope is we get to $500,000,” said chief administrative officer Scott Barton of the community support for the project thus far.
“If we don’t (make it to $500,000) then we just gear back the project.”
The money to repay the $2,500,000 grant will come mainly from Municipal Sustainability Initiative grant funding and property taxes. A payment structure to repay the loan has also been created and annual payments of combined principal and interest installments will be made.
“There is a need to hurry,” said Mayor George Bohne of funding the proposed FCSS component.
If the FCSS component is unable to secure their own funds to contribute to this project they will lose out on the proposed space in the new sportsfield. A solution which could potentially alleviate ongoing tension between the elementary school and Alberta Health Services.
Council passed the second reading of this bylaw on March 4 and is looking to ratify the bylaw on April 1.
For more information on how this will effect ratepayers in the town please contact the town office at 403-752-3322.