REPORT TO THE CRD BOARD MEETING OF WEDNESDAY, NOVEMBER 30, 2016

MEETING OF WEDNESDAY, NOVEMBER 30, 2016

SUBJECT Bylaw No. 4142: Loan Authorization Bylaw (Regional Parks Service)

ISSUE

As directed by the Board this report brings forward the loan authorization Bylaw No. 4142, to provide funding for completion of the E&N Rail Trail – Humpback Connector (E&N Rail Trail) by 2019.

BACKGROUND

At its meeting of November 9, 2016, the CRD Board authorized staff to develop a loan authorization bylaw for borrowing up to $6.1 million in order to complete the E&N Rail Trail – Humpback Connector by 2019 (agenda Item No. 16-1003).

This project has been included in the 2017 Financial Plan. The bylaw is being presented now in preparation for future borrowing as required, to enable timely progress toward completion of the E&N Rail Trail, which is included in the 2017 Capital Plan.

ALTERNATIVES

1. That Bylaw No. 4142, “Regional Parks Loan Authorization Bylaw No. 1, 2016” be introduced and read a first and second time, and read a third time.
2. That Bylaw No. 4142 be referred back to staff for further information.

IMPLICATIONS

It is estimated that the annual cost to service the $6,100,000 debt over 15 years will be approximately $507,316 per year based on the Municipal Finance Authority of BC (MFA) current indicative market interest rate of 2.94%. The estimated annual cost per $100,000 assessed value for this new debt is $0.51. The rates used in the analysis are estimates based on the information currently available and are subject to change.

Pursuant to the Regional District Liabilities Regulation, elector approval is not required if borrowing for a regional park service. The required approval can be obtained with the consent of at least 2/3 of the participants as per Section of 349 (1) (b) of the Local Government Act.

CONCLUSION

In its commitment to complete the E&N Rail Trail – Humpback Connector by 2019, the CRD Board has directed staff to prepare a loan authorization of $6.1 million to fund the project. The bylaw is being presented now in preparation for future borrowing as required to enable timely progress toward completion of the E&N Rail Trail by 2019.

RECOMMENDATION

That Bylaw No. 4142, “Regional Parks Extended Service Loan Authorization Bylaw No. 1, 2016” be introduced and read a first and second time, and read a third time.

Attachment: Bylaw No. 4142