Sylvan Lake Town Council passed second and third reading of a borrowing bylaw for the North Water Reservoir.
The bylaw was first introduced to Council on Feb. 26, which authorized the municipality to incur “indebtedness by the issuance of debenture(s) the sum not to exceed $10-million for the purpose of constructing a water reservoir.”
If the Town borrows the maximum of $10-million for the project, it will increase the Town’s debt limit to approximately 70 per cent by the end of the year.
Residents of Sylvan Lake were given 15 days to petition Council for a vote on the borrowing bylaw.
According to Darren Moore, director of finance, no petition was received by Town staff before the second and third readings of the bylaw.
“After the third reading there is a 30 day period where an application can be made to the Court of Queen’s Bench,” Moore said, adding the 30 day period expires on April 26.
An application to the Court of Queen’s Bench is done to have the bylaw declared invalid.
The project was identified by the Town’s 10 year capital plan. The additional reservoir is needed for Sylvan Lake as the current residency reaches the limits of the current operational reservoir.
The reservoir currently in use for Sylvan Lake is able to handle a population of 18,000 people. The new reservoir is expected to last to a population of 30,000.
Previously, Mayor Sean McIntyre said the new reservoir is a priority for the Town.
“This is an absolutely vital project for us,” McIntyre said.
Sylvan Lake will ultimately pay for 48.6 per cent of the cost to build the new water reservoir. The remaining 51.4 per cent will be supplied by future development in the town.
“With a project budget of $10-million, the funding proposed are new debt and provincial grant as there are insufficient funds in the water offsite levy reserve and the Town’s utility capital reserve due to other projects which are currently underway,” the report to Council reads.
If no application are made to the Court of Queen’s Bench over the 30 day period, construction can begin on the new water reservoir as early as April 26.
Town staff and Council expect to begin the construction process in May of this year. Construction time is estimated to be 18 months.
The expected completion date of the North Water Reservoir is toward the end of 2019.
The second and third reading of the borrowing bylaw were carried unanimously by Town Council.