City council will consider temporarily borrowing $25 million dollars today to fund construction of a new RCMP detachment at the corner of Fourth Avenue and Victoria Street.
Bylaws allowing the city to borrow the money have already been approved through the city's alternative approval process. Counter-petitions against the bylaws failed to reach the threshold to defeat the bylaws.
The bylaws considered tonight will instruct city staff to actually borrow the money to fund construction of the detachment - which is expected to cost $10.5 million this year and $21 million next year.
The total budget for the construction is $38.9 million.
The $25 million will be borrowed temporarily. Once the project is complete, a 20-year loan for the full cost of the project will be used to pay off the temporary debt, according to a report by city finance manager Sandra Stibrany.
"The temporary financing will be arranged through the Municipal Finance Authority which currently offers an interest rate of 1.7 per cent," Stibrany wrote. "Interest based on the principal amount borrowed will be paid monthly and the total cost of interest will be capitalized into the overall project."
The compound interest on $25 million dollars at 1.7 per cent over two years is $857,225.
City council will debate the issue at tonight's regularly-scheduled council meeting.
