Being one of Alberta’s fastest growing communities comes at a price.
Sylvan town council reviewed its 10-year $128-million capital plan on Monday and councillors were told to expect town debt to rise significantly to pay for future projects.
A table showing debt loads up to 2018 provided by director of finance Darren Moore showed that debt would peak at about $24.9 million in 2018 — 67 per cent of the town’s allowable debt limit.
That’s up from this year’s projected debt of $11.3 million.
Those numbers assume that all of the proposed projects are approved by council and go ahead.
Mayor Susan Samson said following the meeting that the level of projected debt is a “real concern.
“It’s always nice to say you’re going to hold the line on taxation increases and things like that. But the reality is we experienced some tremendous growth in the late ’90s and now we’re trying to play catch up.”
A census is underway and the final tally is expected to be in the 13,000 range for the town, which sat at about 7,500 in 2001.
“That signifies a community that’s very popular, and people want to live here and move here and work here. And to do that you have to have those amenities.
“When you look at what the 10-year capital plan is there is nothing frivolous there.”
Road improvements, a new multiplex facility, a community hub, trails and library expansions are among the planned projects.
“Those are institutional structures that residents expect and they expect a certain level when we are the size that we are.”
Samson said paying for future growth will likely mean higher tax increases than the two- to three-per cent increases seen in recent years.
“To suggest anything else would be a disservice to our residents.”
The biggest ticket item on the horizon is the multiplex, which council has committed to keeping at $16.5 million.
Financial support from neighbouring communities, the province and significant local fundraising will be required, she said.
“There’s only so much money we’re going to allocate from taxes and reserves for this.”
Adding to the burden is the continual downloading from the province of new responsibilities, and their connected costs to municipalities, while cutting back on grants and transfers.
lCouncil approved the demolition of the former Caribbean Flava restaurant on Lakeshore Drive.
The restaurant at 4613 Lakeshore Drive has been closed for some time. Council had no word on what is planned for the site.
pcowley@www.reddeeradvocate.com