City of Prince Rupert starts the clock on Alternative Approval Process for two infrastructure loan plans

August 14th  has been set by the City as the deadline date for residents of Prince Rupert to be heard, if they wish to slow down the city's borrowing plans, or send two Infrastructure loan programs to a larger referendum.

Two notices were posted to the City of Prince Rupert website today that outline the path forward towards the AAP initiative for the Infrastructure Replacement Loan Authorization Bylaw and that related to the city's Linear Liquid Waste Infrastructure replacement plans.

The Infrastructure Design Loan Authorization Bylaw authorizes the borrowing of up to $5,000,000 over a 30 year period to complete the design of certain water and sewer linear infrastructure deemed high risk of failure 

Details on how the City would repay that amount is explained below: 

Repayment of the proposed borrowing is expected to be split 60/40 between water and sewer fees, with an estimated water fee increase of 7% ($35) and an estimated sewer fee increase of 4.5% ($21) (both net of discount). 

The estimated servicing cost for the borrowing is $325,000 annually at the current Municipal Finance Authority interest rate of 4.62%.

Details towards that loan authorization program can be reviewed here.

Towards the Linear Liquid Waste Infrastructure Replacement Loan Authorization Bylaw, it would authorize the borrowing of up to $40,000,000 over a 30 year period to replace certain sewer linear infrastructure. 

Debt is expected to be taken in stages (allowing for opportunities for new revenue sources to reduce the borrowing necessary should they become available). Expected stages are $15M in 2024 and $25M in 2025.  

The Repayment plan looks as follows:

Repayment of the proposed borrowing schedule is expected to result in an estimated sewer fee increase in 2024 of 35% ($163) and 44% in 2025 ($277) (net of discount). 

The estimated servicing cost for the scheduled borrowing is $979,000 annually on $15M of debt and $1,631,000 annually on $25M of debt for a total annual repayment of $2,610,000 at the current Municipal Finance Authority interest rate of 4.62%.

Details towards that loan authorization program can be reviewed here.

The AAP initiate makes use of Elector Response Forms to be submitted to or mailed to City Hall, how it all works is outlined below:

If, after the deadline, elector response forms are certified by the Corporate Administrator as having been signed by at least 10% of the eligible electors in the City of Prince Rupert  (calculated to be 1,029), 

Mayor and Council may not proceed with the adoption of the Infrastructure Replacement Design Loan Authorization Bylaw No. 3519, 2023 and/or Linear Liquid Waste Infrastructure Replacement Loan Authorization Bylaw No. 3520, 2023

That would mean that The city would  not proceed with the process unless the matter receives assent of the electors in a voting proceeding. 

That being a likely referendum if required, a step that would require additional money to host.

The two AAP initiatives were introduced at the last Council session on June 26th,  notes on the topic and the report fro the Agenda that goes with the initiative can be reviewed here.

More notes on the City's Financial themes can be reviewed here, while infrastructure notes are available here.

Cross posted from the North Coast Review.