St. Albert has approved a borrowing bylaw that will have the city raising taxes to fund the creation of a fourth fire hall, council heard on Monday.
The fire hall will be located on about 17.3 acres of land north of the future major road, Fowler Way, located west of St. Albert trail. Council voted to acquire this land for $2.55 million using $2.25 million from the city's off-site levy recovery fund. Now, the city will borrow $26.5 million on credit to reimburse the fund and finance the fire hall's design and construction.
Repayment for this borrowed funding is set over a period of 20 years. To pay the debt, the bylaw states the city will levy and raise municipal taxes each year.
Property taxes have already been slated by the city to increase 1.5 per cent annually, with anticipated future property-tax revenue – referred to as new assessment growth – subtracted from that number. These increases are intended to cover shortfall in the city's repair, maintenance, and replacement (RMR) budget.
When asked at what time the tax increases resulting from the fire hall borrowing would come into effect, Diane McMordie, St. Albert's director of finance, said the earliest taxpayers would see "some tax impact" would be in 2023.
"We tend to delay our borrowings until the second half of the year, so that the tax impact doesn't happen until the following year," McMordie said.
The city said the fourth fire hall is needed to accommodate St. Albert’s growing population and expansion north. The design is forecasted to cost $1.5 million with construction costs set at $12.8 million. According to a background document from a 2019 motion, the city plans to spend $779,000 for a tanker, $1.5 million for a fire engine, and $2.5 million to buy an aerial fire truck.
During council, city administration said the fire hall's construction is projected to take place in 2023 or 2024, after equipment is ordered and the design is completed.
