Keremeos Village Council needs to move ahead with the village’s loan application for the proposed reservoir, council was informed at the regular meeting on December 3.
In a staff report, it was explained that the Village of Keremeos may borrow money for a capital project for a maximum term of 30 years, as decreed by the Community Charter.
The money must be authorized by bylaw as well as having the approval of the electorate through the Alternate Approval Process or by referendum.
Because this type of funding can only be done by a regional district through the Municipal Financing Authority on behalf of the municipality, Keremeos council must deal with the financing details soon in order to make the loan request to the province one month prior to the semi annual deadlines of February 22 and August 15 of 2013, said the staff report.
Council’s timeline to make the August 15 deadline involve the following dates:
1. Loan authorization must be given three readings by council by February 5, 2013.
2. The Village of Keremeos will be seeking taxpayer approval through referendum prior to the application, with a referendum date set for April 27 , 2013.
3. A successful referendum vote will see the bylaw adopted by May 7, 2013.
4. RDOS must submit application to the Municipal Finance Authority by August 15, 2013.
Updated figures for the construction of the proposed 2,000 cubic metre reservoir, including earthworks, base preparation, fencing and gates, valve chamber and piping is now estimated at 1, 240,000 dollars. The village has received approval for a $300,000 grant, leaving a borrowed requirement of $940,000. (The Keremeos Irrigation District has set aside $300,000 in a reserve fund to build irrigation related infrastructure (piping, etc.) to and from the reservoir.
It is further estimated that annual principal and interest payment on that amount will be $52,480.