Enderby wants to borrow $850,000 for storm sewer upgrades

By Richard Rolke - Vernon Morning Star Published: April 17, 2012 9:00 AM

Enderby residents are being asked for permission to borrow money to prevent future flooding. The alternate approval process is being used to the city can borrow up to $850,000 to upgrade storm sewer along Regent Avenue and replace damaged or failed drainage pipes elsewhere in the community. “Our backs are against the wall and that’s what this is addressing,” said Coun. Brad Case. Storm sewers was unable to keep up with  significant rainfall last year and flooding occurred. Under the alternate approval process, 10 per cent of voters’ signatures would be needed on a petition to prevent the city from borrowing funds. Case says it was decided to go with an AAP instead of a referendum to streamline public assent so the city can move ahead with the work as soon as possible. “People need to know what’s going on in the community if they have concerns, they can get a hold of us.” It’s been estimated that 10 per cent of the eligible electors would translate into 248 names on a petition. Alternate approval process forms are available at city hall and they must be submitted by June 5 at 4:30 p.m. The $850,000 would be borrowed over 30 years. Coun. Earl Shipmaker doesn’t expect much opposition. “I think people understand the nature of the situation,” he said of last year’s flooding. The city hasn’t determined options if 10 per cent of voters sign a petition against the borrowing. “I don’t know what we would do next. Basically, we would have to go to referendum,” said Shipmaker.
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http://www.mfa.bc.ca/amortschedules.htm

This is an indication of cost of a 30 year borrowing of $850,000 at the present indicated interest rate of 3.96%.
Schedule taken from MFA (Municipal Finance Authority) website amortization schedules. Amortization Schedules.xls