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Borrowing - Rd Improvement

BYLAW NO. 554

OF THE VILLAGE OF HYTHE

(hereinafter referred to as “the Municipality)

IN THE PROVINCE OF ALBERTA


This bylaw authorizes the Council of the Municipality to incur indebtedness by the issuance of debenture(s) in the amount of $450,000 for the purpose of Roads Improvement Capital Infrastructure Project.


WHEREAS:

The Council of the Municipality has decided to issue a bylaw pursuant to Section 258 of the Municipal Government Act to authorize the financing, undertaking and completion of the Roads Improvement Capital Infrastructure Project.


Plans and specifications have been prepared and the total cost of the project is estimated to be $458,393 and the Municipality estimates the following Grants and contributions will be applied to the project:


Capital Reserves         $    8,393

Provincial Grants         $           0

Debenture(s)               $ 450,000

Total Cost                    $ 458,393


In order to complete the project it will be necessary for the Municipality to borrow the sum of $450,000, for a period not to exceed thirty (30) 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 this bylaw.


The estimated lifetime of the project financed under this bylaw is equal to or in excess of thirty (30) years.


The principal amount of the outstanding debt of the Municipality at December 31, 2019 is $0.00

and no part of the principal or interest is in arrears.


All required approvals for the project have been obtained and the project is in compliance with

all Acts and Regulations of the Province of Alberta.


NOW, THEREFORE, THE COUNCIL OF THE MUNICIPALITY DULY

ASSEMBLED, ENACTS AS FOLLOWS:


That for the purpose of constructing the Roads Improvement Capital Infrastructure Project.


1. the sum of FOUR HUNDRED FIFTY THOUSAND DOLLARS ($450,000) be borrowed from the Alberta Capital Finance Authority or another authorized financial institution by way of debenture on the credit and security of the Municipality at large, of which amount the full sum of $450,000 is to be paid by the Municipality at large.


The proper officers of the Municipality are hereby authorized to issue debenture(s) on behalf of the Municipality for the amount and purpose as authorized by the bylaw, namely Roads Improvement Capital Infrastructure Project.


2. The Municipality shall repay the indebtedness according to the repayment structure in effect, namely semi-annual equal payments of combined principal and interest installments not to exceed THIRTY (30) years calculated at a rate not exceeding the interest rate fixed by the Alberta Capital Finance Authority, or another authorized financial institution, on the date of the borrowing and not to exceed FOUR (4) percent.


3. The Municipality shall levy and raise in each year municipal taxes sufficient to pay the indebtedness.


4. The indebtedness shall be contracted on the credit and security of the Municipality.


5. The net amount borrowed under the bylaw shall be applied only to the project specified by this bylaw.


6. This bylaw comes into force on the date it is passed.


READ A FIRST TIME THIS 11 DAY OF May 2020.

READ A SECOND TIME THIS ______ DAY OF _____________2020.

READ A THIRD TIME THIS _______ DAY OF ______________ 2020.


__________________________________________


Mayor


__________________________________________

Chief Administrative Officer


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