Pursuant to Section 180 of the Community Charter, approval of the electors is required before Council can adopt a Loan Authorization Bylaw. In accordance with Section 84, Council has authorized staff to undertake an Alternative Approval Process as the means for determining whether the public is in support of borrowing for the following vital project, which aligns with the City of Salmon Arm's Corporate Strategic Plan and the provision of essential core services.
Replacement Zone 5 Booster Station
The Zone 5 Booster Station feeds into the Zone 5 reservoir providing water to large portions of the SE quadrant of the City including the Industrial Park. The existing booster station has exceeded its useful life and the existing reservoir is incapable of providing volumes required for four (4) hour fire flows. Upgrades to the booster station include pumps capable of providing domestic and fire flows without necessary reliance on the reservoir volumes. Through the Asset
Management Risk Evaluation process for 2021, the Zone 5 Booster Station was revised from "High" to a "Very High" risk due to increased development in the lower SE quadrant putting further usage pressure on the system.
The total project cost is estimated at $2,523,000.00 of which $225,000.00 is proposed to be funded from the Water Development Cost Charge Reserve Fund. The City proposes to borrow the remaining project funding of $2,298,000.00. The repayment is projected at $121,335.00 annually financed over thirty (30) years at an estimated interest rate of 2.91%. The proposed borrowing will not result in a frontage tax increase and can be funded from existing water utility.
Loan Authorization Bylaw No. 4502 Zone 5 Booster Station Report Package
4502- Loan Authorization Bylaw
Elector Response Form