St. Albert city council passed first reading on a $20.5 million borrowing bylaw on July 4 for the next phase of the ongoing St. Albert Trail improvement project.
The borrowing bylaw, once passed, will fund the third phase of construction on the section of St. Albert Trail between the Everitt Drive North intersection and the Neil Ross Road intersection.
Although the bylaw will allow the city to borrow up to $20.5 million from the Alberta Treasury Board, council would need to approve any spending over $16.2 million, as that's the approved project budget, not including a 25 per cent contingency built into the draft bylaw.
The Phase 3 budget of $16.2 million was approved last month after city administration presented council with a few different options for the project's scope, and council elected to move forward with the level of work originally planned.
Once complete, the third phase of construction will include an additional lane travelling both directions, the realignment of southbound lanes to match the work completed during the first two phases, the installation of a parallel pedestrian trail, and required utility infrastructure and traffic signals.
The debt, once approved, will likely involve a 20-year term; however, only 35 per cent of the overall debt will be the city's direct responsibility as the remaining 65 per cent will be covered through off-site levies, which are fees paid by developers who directly benefit from the city front-ending the money to complete the project, read a report to council prepared by Brenda Barclay, a financial operations manager for the city.
Current Treasury Board interest rates imply the city's tax impact for debt servicing is “expected to be $266,297 in 2025, and $190,969 in 2026," Barclay's report read.
The $26 million in existing debt the city has taken on for the first two phases of the St. Albert Trail improvement project do not have a direct tax impact, a council document included in the July 4 meeting agenda says.
First reading of the borrowing bylaw passed with no council debate.
In an interview, Coun. Mike Killick, who was the sole opposition vote when council approved the scope of Phase Three last month said he plans to vote against the bylaw during second and third reading, which is currently scheduled for Sept. 19.
“I haven't had one resident come up to me and say that we need more construction on St. Albert Trail, or more lanes on St. Albert Trail, but I get lots of people coming up to me and saying that we should have moved ahead with our (community) amenities building with either a pool or soccer fields or something as a much higher priority,” Killick said.
“People have commented that we need to do (Phase Three) now because it's going to cost more money in the future (but) my comment would be that the same holds true for the amenities site,” he said, adding, “we should be starting on that now because it's going to cost more in the future if we don't do it now.”
“Personally I think we've not got the right priorities for what services that residents want right now.”
If the borrowing bylaw is approved in September, the city's long-term debt will reach about $129.4 million, which is slightly more than half of the city's policy-determined debt limit, and about 43 per cent of the city's roughly $300 million debt limit as dictated under the MGA.
