City council looking to borrow $9 million for construction projects
By: Matt Durnan
| Posted: Thursday, Jan 30, 2014 01:13 pm
Airdrie City council voted unanimously in favour of first reading of a pair of debenture bylaws that would see the City borrow more than $9 million, on Jan. 20.
The money will be used to fund two separate construction projects, the reconstruction of 40th Avenue and the construction of a west Airdrie reservoir pumphouse.
Total project cost for 40th Avenue is slated at $6.6 million and the cost associated with the reservoir pumphouse is set at $12.6 million, both construction projects were approved in the 2014 budget by council on Dec. 16.
Council approved first reading on bylaws that would allow the City to debenture $6.2 million for the reservoir pumphouse and $3.2 million for 40th Avenue.
Mayor Peter Brown explained that the need for borrowing was to stay out in front of the development needs of the community.
“We’re looking ahead to what the community needs and the development levies that we have collected have not covered the costs of these projects,” said Brown. “These debentures will be paid off in full from the interest collected from development levies.”
Construction of 40th Avenue is expected to commence this spring and the roadway will be a two-lane connecting route between the neighbourhoods of Cooper’s Crossing and Hillcrest.
The bylaw will come back to council at a later date to allow for advertising and a petition period. The petition period closes Feb. 15.