Olds town council has passed a bylaw to borrow $10,734,023 to finance construction of a new operations centre to replace three buildings currently used by staff. That figure includes money to cover the cost to reclaim the existing wastewater treatment centre land.
The money to be borrowed exceeds the town's debt limit, so town officials applied for — and received — special permission from Municipal Affairs Minster Kaycee Madu to exceed that limit.
Council passed that bylaw during its Aug. 26 meeting approving second and third reading of it. Coun. Heather Ryan voted against both readings. The bylaw received first reading in May.
According to finance director Sheena Linderman, there was no alternative to borrowing above the debt limit to undertake the project, including reclamation of the wastewater treatment land.
As of Dec. 31. the town's regulated debt limit was $35,027,291.
"This borrowing will put us over by approximately $1.7 million," Monica Leatherdale, the town's communications coordinator said in an email to the Albertan.
"We will be back within our regulated limit by 2021," she wrote.
Leatherdale said if the total taxable assessment remains static, "the cost to the average residential household would be approximately $85 per year."
The operations centre was approved in the town's 2019 and 2020 budgets, including $1 million in the 2019 budget and $8 million in the one for 2020.
Plans call for it to be built in the area where the town’s sewage treatment plant has been located, along 70th Avenue. That plant has been taken out of commission because the town’s sewage now goes to Red Deer for treatment as part of a regional system.
The idea is for it to house the town’s vehicles and equipment, sand and salt for roads, materials for road repairs, pipes for the water system, garbage bins, and provide office space as well.
Councillors Wanda Blatz and Heather Ryan wondered what would happen to the old sites — whether their "disposal" could perhaps help cover the borrowing costs for the new facility.
"Yes, we will create a plan basically to dispose of the sites once they're no longer required, as we would do with anything that's no longer required of that nature," chief administrative officer Michael Merritt said. "We'll bring a plan back to council for your consideration with regards to possible options."
However, director of operations Scott Chant said town officials have not so far undertaken an analysis of what those properties would be worth, although he has some suspicions.
"Some of them in their current state wouldn't be worth the building that they're in now. The vacant lot would actually have more value," he said.
For example, he said an environmental assessment would have to be done on sites like the old fire hall as well as the town shop which has existed since 1963, to find out what, if any hydrocarbons or other issues might lie underneath and how much it might cost to fix those problems.
"Until we actually drill down and actually get an environmental assessment (done) we don't know," Chant said. "And then, can it be repurposed for something else within the town that we need?"
He suggested in at least the case of the old town shop, it might best serve as a parking lot.
Ryan said she's not in favour of borrowing money for the new operations centre. She also expressed "concern" about how much money the town will reap from the old properties, given Chant's answers on that question.
Coun. Mary Jane Harper asked when construction of the new facility will begin.
Chant said full detailed design has not yet been undertaken because officials were waiting for the borrowing bylaw to be approved.
However, he anticipates the frame for the building will be bought this year and construction of the foundation will begin next spring.
