City to hold causeway debt financing open house

City to hold causeway debt financing open house

The City of Portage la Prairie has scheduled a June 10 open house meeting to explain and give the public its chance to question its Crescent Lake Causeway Project debt financing.

Total costs for the Crescent Lake Causeway Project are now estimated at $8.2 million for the low-level three-lane causeway with roundabouts and other costs of $950,000 for engineering and contingency.

The city must pass a bylaw to allow for the Crescent Lake Causeway Project – 2020 Debt financing.  Copies of the proposed by-law (19-8695) are available for review at city hall or on the city’s website at the following link: Proposed Bylaw No. 19-8695

The public notice of the public meeting reads: PUBLIC NOTICE is hereby given pursuant to subsection 169(6) of The Municipal Act that the Council of the City of Portage la Prairie intends to hold a public hearing at City Hall, 97 Saskatchewan Avenue East on the 10th day of June 2019 at 6:00 pm to present the following proposal.

The Crescent Lake Causeway Project will replace the bridge and expand the causeway on Crescent Lake. The city explains Crescent Lake Causeway Project will be fully funded by the Federal Government Gas Tax including payments to be made for debt financing for this project.

Funding Sources

$5.85 million from Gas Tax reserves and contributions, $3.3 million from debt financing for a five-year term commencing in 2020 at an estimated interest rate up to five percent.

The estimated annual debt payment of $762,216.83 will be made from annual Federal Gas Tax contributions and no increase to property taxes will be needed for this purpose, the city explains.

The public notice says city council will hear any person who wishes to make a presentation regarding the debt financing for this project. Representation includes the right to ask questions or register an objection regarding the debt financing of this project.

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