Having received no response from electors, the City of Salmon Arm is proceeding with the process to borrow $4.2 million for the replacement of its Zone 2 pump station.
City of Salmon Arm council gave final reading to a loan authorization bylaw and three readings to a temporary borrowing bylaw for the Zone 2 pump station. Adoption of the former, for the borrowing of $4,226,850, was done with the required support of electors obtained through the alternative approval process. To defeat the proposed borrowing, 10 percent or more of eligible electors were required to petition in opposition.
For the proposed borrowing, the city received no response.
The city intends to fund the project utilizing temporary borrowing, which may be accessed only after council has adopted the loan authorization bylaw and obtained the necessary approvals from the province.
“Under temporary borrowing, the city will only be responsible for monthly interest on the outstanding balance,” commented city chief financial officer Chelsea Van de Cappelle.
Once the project is complete, the city will transfer the project to long-term borrowing, anticipated to occur in fall 2025 or spring 2026. Debt repayment will be funded by an increase to the city’s water frontage parcel tax, estimated to increase by 37 cents to $2.45 per taxable foot of frontage. According to the city, for a property with 60 feet of taxable frontage, the increase will amount to an additional $22.20 per year in water frontage parcel taxes.
Located by the railway tracks at Canoe Beach, the 54-year old pump station has been assessed by the city as being a “very high” risk, having exceeded its useful life. The city has proposed relocating its replacement by the Canoe Beach water treatment plant where it will be “above the flood elevation” and increase operating capacity.
Read more: Column: Planned water infrastructure upgrades will help keep taps flowing in Salmon Arm
Read more: Salmon Arm council backs borrowing of $4.2M for pump station replacement
