Proposed Bylaw 428
THIS BYLAW AUTHORIZES THE COUNCIL OF THE TOWN OF BANFF TO INCUR INDEBTEDNESS BY THE ISSUANCE OF DEBENTURE(S) IN THE AMOUNT OF $1,370,000 FOR THE PURPOSE OF CONSTRUCTION OF A BIOMASS DISTRICT HEATING SYSTEM.
The Council of the Town of Banff has decided to issue a bylaw pursuant to section 258 of the Municipal Government Act to authorize the financing to construct a biomass district heating system. Plans and specifications have been prepared and the total cost of the project is estimated to be $1,800,000. The Town of Banff estimates the following grants and contributions will be applied to the project:
Capital Reserves $0
Federal Grants $ 430,000
Total Cost $1,800,000
In order to complete the project, it will be necessary for the Town of Banff to borrow the sum of $1,370,000 for a period not to exceed twenty years, from the Alberta Capital Finance Authority or another authorized financial institution, by the issuance of debentures on the terms and conditions referred to in this bylaw.
The estimated lifetime of the project financed under this bylaw is equal to, or in excess of twenty years.
The principle amount of the outstanding debt of the Town of Banff at December 31, 2018 is $16,036,330 and no part of the principal or interest is in arrears.
All required approvals for the project have been obtained and the project is in compliance with all Acts and Regulations of the Province of Alberta.
NOW THEREFORE the Council of the Town of Banff, in the Province of Alberta, duly assembled, ENACTS AS FOLLOWS:
1.1 This bylaw may be cited as Borrowing Bylaw 428 – Biomass District Heating System.
2.1 That for the purpose of constructing a district heating system, the sum of ONE MILLION THREE HUNDRED SEVENTY THOUSAND ($1,370,000) be borrowed from the Alberta Capital Finance Authority or another authorized financial institution by way of debenture on the credit and security of the Town of Banff at large, of which amount the full sum of $1,370,000 is to be paid by the Town of Banff at large.
2.2 The proper officers of the Town of Banff are hereby authorized to issue debenture(s) on behalf of the Town of Banff for the amount and purposed as authorized by this bylaw, namely the construction of a district heating system.
2.3 The Town of Banff shall repay the indebtedness according to the repayment structure in effect, namely semi-annual or annual equal payments of combined principal and interest installments not to exceed TWENTY (20) years calculated at a rate not exceeding the interest rate fixed by the Alberta Capital Finance Authority or another authorized financial institution on the date of the borrowing, and not to exceed SIX (6%) percent.
2.4 The Town of Banff shall levy and raise municipal taxes sufficiently to pay the indebtedness.
2.5 The indebtedness shall be contracted on the credit and security of the Town of Banff.
2.6 The net amount borrowed under this bylaw shall be applied only to the project specified by this bylaw.
2.7 This bylaw comes into force on the date it is passed.
READ A FIRST TIME this XX day of XXXX, 2020.
READ A SECOND TIME this XX day of XXXX, 2020.
READ A THIRD TIME this XX day of XXXX, 2020.
SIGNED AND PASSED this XX day of XXXX, 2020.
Anyone wishing to file a petition with respect to this bylaw must do so no later than 4:30 p.m. on Friday, March 6, 2020. The procedure for filing a petition is available from the municipal clerk. Please email email@example.com or call 403.762.1209 for more information.