TAMRMS#: B06
11.1
REQUEST FOR DECISION
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Bylaw 13/2026 - NE Borrowing Bylaw (2nd and 3rd Reading)
Presented by: Stanley Chan, Manager of Financial Operations and Reporting, Financial & Strategic Services Department
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RECOMMENDED MOTION(S)
recommendation
1. That Bylaw 13/2026, being a Borrowing Bylaw for Northeast Servicing, be read a second time.
2. That Bylaw 13/2026, be read a third and final time.
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SUMMARY
The purpose of this report is to bring forward an item from the May 5, 2026, Regular Meeting of Council. This Bylaw received 1st reading on May 5, 2026, and is being brought forward for 2nd and 3rd reading.
ALIGNMENT TO COUNCIL DIRECTION OR MANDATORY STATUTORY PROVISION
On May 5, 2026, Council passed the following motions:
BL-24-026
That Bylaw 13/2026, being a borrowing bylaw for Northeast Servicing Bylaw, be read a first time.
BACKGROUND AND DISCUSSION
Please refer to the Agenda Report previously distributed on May 5, 2026. The Northeast Servicing Bylaw is in attachment titled “BL 13-2026 Northeast Servicing Borrowing Bylaw”.
STAKEHOLDER COMMUNICATIONS OR ENGAGEMENT
The borrowing bylaw was advertised in accordance with provisions detailed in the Municipal Government Act (MGA) as well as Council Policy C-CAO-22 Borrowing Bylaw Advertising.
IMPACTS OF RECOMMENDATION(S)
Please refer to the Agenda Report previously distributed on May 5, 2026.
Financial:
The City will be looking to borrow the funds from the Alberta Treasury Board up to a 20-year term. The actual interest rate will be based on current posted rates at the time of borrowing and advancement of funds and the term will also be selected at that time.
The City is responsible for 100% of the project of which 93% of the cost is offsite leviable and 7% is non-offsite leviable. The debt servicing of the offsite leviable portion will be funded from the off-site levy recovery fund and the non-offsite leviable portion will be funded from taxes. Based on the assumption that a 20 year term will be chosen, that the current posted rate remains the same, and the cash flow needs of the project are in line with the approved capital charter, the annual tax increase for debt servicing is expected to be $124,548 in 2028 and $124,528 in 2029.
Current projections and analyses indicate that the off-site levy reserve is expected to maintain adequate balances to meet annual debt servicing requirements. However, it is acknowledged that the municipality remains responsible for identifying and securing an alternative funding source should this become necessary.
Provincial legislation requires municipalities to calculate a debt limit and a service on debt limit and to stay within those limits. In addition to the MGA regulations, the City of St. Albert Council Policy C-FS-03 - Debt Management imposes further restrictions on the use of debt financing. Policy restriction stipulates that the City will stay within 85% of the provincial limits overall. The new levels of debt contemplated for the City against these various limits, presented in the attachment titled Debt and Tax Impacts, demonstrates that the additional proposed debt for the Northeast Servicing is within MGA and City limits.
Compliance & Legal:
Section 254 of the MGA states that “No municipality may acquire, remove, or start the construction or improvement of a capital property that is to be financed in whole or in part through a borrowing unless the borrowing bylaw that authorizes the borrowing is passed.”
In accordance with MGA subsection 251(3), a borrowing bylaw must be advertised, unless the term is five years or less (section 257), then advertising is not required. Therefore, Bylaw 13/2026 must be advertised, with time allowed for a petition before the bylaw is presented for second and third reading.
Council Policy C-CAO-22 Borrowing Bylaw Advertising further stipulates that an initial advertisement of the bylaw must take place within 10 days after first reading (the “Policy initial advertisement stipulation”) and that the two statutorily mandated advertisements will be delayed such that electors are afforded a full 60 days to present a petition if
desired. The advertisement timelines outlined were followed in attachment titled “Northeast Servicing Borrowing Bylaw Timelines”.
A petition was not received during the petition period; there for Bylaw 13/2026 is eligible for second and third reading at this time.
Program or Service:
If the borrowing bylaw is not passed, the City will be unable to secure the financing required to support the project. An alternate funding source would need to be identified, or the project would need to be cancelled or postponed.
Organizational:
If the borrowing bylaw is not approved, Project Management resources will be reassigned to other funded projects.
Risks
None at this time
ALIGNMENT TO PRIORITIES IN COUNCIL’S STRATEGIC PLAN
Initiative aligned with Strategic Plan:
None at this time
ALIGNMENT TO LEVELS OF SERVICE DELIVERY
B.4.2.d Investment and Development Readiness
Reducing barriers to investment or development in St. Albert by taking actions to address any current gaps such as infrastructure, servicing capacity, land availability, etc.
D.2.1 Off-Site Levy Program
Support growth and development by administering City's off-site levy program for essential infrastructure needed.
IMPACTS OF ALTERNATIVES CONSIDERED
If Council does not wish to support the proposed motion, Administration presents the following alternatives for Council’s consideration.
ALTERNATIVE 1:
Financial:
Reducing the level of debt in the borrowing bylaw could result in insufficient funds available to complete the project and may require a second borrowing bylaw.
Compliance & Legal:
None at this time
Program or Service:
None at this time.
Organizational:
None at this time.
Risks
None at this time.
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Report Date: July 14, 2026
Author(s): Stanley Chan
Department: Financial and Strategic Services
Department Director: Anne Victoor
Managing Director: Diane McMordie
Chief Administrative Officer: William Fletcher