Capital Project Loan Authorizations

To proceed with long-term borrowing for significant capital projects, Council must achieve assent from the electors of Prince Rupert prior to adopting a loan authorization bylaw. They may do so either by Referendum, or by Alternative Approval Process. The City has developed this page to help familiarize the community with upcoming projects that require loans, and to share information on how you can participate in loan approval decision-making.

Current Projects Requiring Capital Loan Authorization

Underground Servicing Lines

To address known infrastructure needs head on - the City has completed an Infrastructure Replacement Strategy based on known age and condition of City infrastructure - specifically focusing on water pipes, which have both the highest likelihood and highest consequence of failure. The intent is also to replace the sewer lines at the same time, which are of a similar vintage and condition. This strategy sets the trajectory and priority for future infrastructure spending over the next five years. In addition to developing the strategy, the City has also been advocating for additional resourcing from higher levels of Government to implement it. We have been successful thus far in achieving contributions from the Provincial government and have also now secured funds from the Federal Government. As a part of the application for funds, the City also had to commit to contribute a portion of project costs - which is why the City has now approved the following loans to cover our portion of anticipated costs. 

Infrastructure Replacement Design Loan Authorization Bylaw No. 3519, 2023

The City is undertaking the replacement of 26 kms worth of critical water and sewer infrastructure starting in 2024. Engineering/design works are necessary to conduct the replacement of the piping. The City received a significant grant ($65M) from the Provincial government for the water piping replacement with one of the conditions being that engineering and design would be covered by the City. Given the water utility is driving the undertaking, the debt is proposed to be funded through a 60/40 split between the Water and Sewer Utilities. The anticipated fee increase in 2024 to service the debt at the current interest rate is as follows:

 

Water

Sewer

Total

Anticipated Debt obtained

$3M

$2M

$5M

Estimated Annual repayment

$196,000

$131,000

$327,000

Sewer Fee increase

7%

4.5%

 

Fee increase (net discount)

$35

$21

$56

Linear Liquid Waste Infrastructure Replacement Loan Authorization Bylaw No. 3520, 2023

The City has also now achieved contributory Federal funding for the water piping replacement as well as sewer piping replacement. As a condition of receiving Federal funding, the Federal government requires the City to contribute towards the expected overall costs of the 26 km replacement project ($205M). The City’s contribution is $40M which will be for sewer replacement. Debenture financing is expected to be taken in stages to match the proposed works plan. The estimated increases to Sewer rates to meet annual repayments of the initial and the successive debt draw is as follows:

 

2024

2025

Total

Anticipated Debt obtained

$15M

$25M

$40M

Estimated Annual repayment

$979,000

$1,631,000

$2,610,000

Sewer Fee increase

35%

44%

 

Fee increase (net discount)

$163

$277

$440

Process 

Before taking the long term debt, Council must pass a Loan Authorization Bylaw and achieve the assent of the electors through either the Alternative Approval Process or by referendum. At the May 8th, 2023 Council meeting, Council passed 1st, 2nd and 3rd reading of both Bylaws. The Bylaws were forwarded to the Province for statutory approval as is a requirement, which was approved in June. At the June 26th, 2023 Council Meeting, Council began the process to obtain the assent of the electors for borrowing - which is proceeding via an Alternative Approval Process. This meant that IF Prince Rupert residents were opposed to borrowing for either of the Infrastructure Replacement Design or Sewer works, they would have had to register their opposition via the Elector Response Form available via the methods described below, by August 14th at 4:30 pm. Following the deadline and achievement of assent of the electors, Council gave final approval to the Loan Authorization Bylaws. 

Documents of Interest

Eligibility + Submission Requirements:

The response of the electors must be in the form established by the City of Prince Rupert. Forms are available at the front desk of City Hall (424 3rd Avenue West, Prince Rupert). Blank forms can be mailed, faxed, or emailed, upon request. An accurate copy of the elector response form may be utilized, provided that it is made of the form prior to any electors signing such form, so that only elector response forms with original signatures are submitted.

For an elector response form to be accepted, it must meet the following conditions:

  • Only eligible electors of the City of Prince Rupert are entitled to sign an elector response form;
  • In order to sign this elector response form a person must either be a resident elector or a non-resident property elector (not both).
  • A resident elector is an individual who is qualified to vote in a jurisdiction by virtue of living in the jurisdiction. To sign this elector response form as a resident elector a person must:
    • Be a Canadian citizen;
    • Be at least 18 years of age;
    • Have lived in British Columbia for at least the last six months; and,
    • Live within the City of Prince Rupert at the time of signing the response form.
  • A non-resident property elector is an individual who does not live in a jurisdiction but is entitled to vote in an election there by virtue of owning property in that jurisdiction. To sign this elector response form as a non-resident property elector a person must:
    • Be a Canadian citizen;
    • Be at least 18 years of age;
    • Have lived in British Columbia for at least the last six months; and
    • Have owned property within the City of Prince Rupert for at least the last 30 days.
    • **Note that if a property is owned by more than one individual, only one of them may sign an elector response form. If a property is owned by more than one individual, then the person signing this elector response form declares that they have received the written consent of the majority of the property owners to sign and submit this elector response form.
  • The full name of the elector must be stated;
  • The residential address of the elector must be stated;
  • If applicable, the address of the property in relation to which the person is entitled to vote as a non-resident property elector must be stated;
  • No facsimile or other electronic form submissions will be accepted. Forms must be dropped off/mailed to City Hall at the front desk or via the mail slot.
  • A person may not sign more than one elector response form in relation to each loan bylaw subject to this alternative approval process.
  • The elector response form must be submitted to the Director of Corporate & Legislative Services before the deadline of 4:30 pm on August 14th, 2023.

Electors may submit this form by hand delivery or mail to:

Director of Corporate & Legislative Services,

City of Prince Rupert

424 West 3rd Avenue,

Prince Rupert, B.C.

V8J 1L7

Additional Information