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qRD passes borrowing bylaw for resource recovery centre

$2.5 million temporary loan approved by qathet Regional District board
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FINAL FINANCING: Temporary borrowing of $2.5 million was approved by qathet Regional District’s board of directors for the final financing of the resource recovery centre and waste transfer station.

qathet Regional District’s (qRD) board of directors has adopted a temporary bylaw to borrow up to $2.5 million from the Municipal Finance Authority for the final resource recovery centre and waste transfer station borrowing.

At the August 27 board meeting, directors were presented a recommendation from staff to give first reading through final adoption of the bylaw.

qRD general manager of financial administration Linda Greenan said the bylaw was intended for borrowing temporarily.

“The borrowing has already been approved through the resource recovery centre and waste transfer station loan authorization bylaw, so this is not new borrowing,” said Greenan. “The borrowing is already approved and already included in the [five-year] financial plan. This just allows us to drive down on that debt, and it will eventually go to a security issuing bylaw.”

Greenan said she expects the regional district will bring a bylaw forward for long-term borrowing in April 2026.

According to a staff report, adoption of a temporary borrowing bylaw will allow staff to access up to $2.5 million, which is the balance of borrowing authorized under a loan authorization amendment bylaw to finance completion of the centre. The report stated this is not new borrowing – this bylaw would simply allow staff to access the balance of funding approved under the loan authorization amendment bylaw.

The staff report indicated that when qRD is ready to apply for long-term debt from the finance authority, the board will need to adopt a security issuing bylaw and apply to the ministry of housing and municipal affairs for a certificate of approval.

The staff report provided scenarios for borrowing the $2.5 million over 10 to 25 years. For a 10-year term, the total payment per year would be $343,753, based on a projected interest rate of five per cent. Total payment per year on a 15-year term would be $259,000, on a 20-year term, $216,000, and on a $25-year term, $191,500.

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