Northland work on budget
Water turned on Nov. 5 for trailer park where pipes had been failing
Shane Magee
Northern News Services
Wednesday, December 2, 2015
SOMBA K'E/YELLOWKNIFE
City council was told Monday replacement of water and sewer pipes in Northland Trailer Park has come in on budget although work remains to be done.
Kerry Penney: The city's lawyer updates council about Northland work. - |
The city's lawyer, Kerry Penney, was selected from the various departments involved to provide the first public financial update during a specially called municipal services committee meeting.
The city borrowed $15,767,679 in 2013 for the work because Yellowknife Condominium Corporation No. 8, which runs the 258 home neighbourhood, wasn't able to pay for replacement of the aging infrastructure zigzagging under homes.
The whole system was at risk of failure and the Canadian Mortgage and Housing Corporation no longer insured mortgage loans for homes.
The report Penney provided showed the work was on budget once an investment scheme is factored in.
Services through the new pipes began Nov. 5.
While some work such as street grading and survey work remains, she said those costs have already been included.
The report shows the project cost $15,869,313.22, which is more than $100,000 more than what was borrowed.
The city invested a portion of the borrowed money that wasn't going to be used immediately. It made $300,789.17 off the invested funds, reducing the amount to be repaid.
Over the 25-year-long loan, the city will pay TD Bank $22,977,435.16. It began repaying the year the money was borrowed.
Through an agreement with the city signed before the work began, the Northland residents will pay down the project cost through a local improvement charge. The maximum monthly charge would've been $358, but because the city received a low interest rate, it will be $296.87 per month.
"We're very happy to come in under the $358," Penney said.
Lee Sacrey, who was involved through financial services firm GL Services, said condo fees for residents were being reassessed, but he expects they will fall. It wasn't clear by how much, though.
Council will have to approve a bylaw before the charges can be applied. That could come in the next couple months.
The report also revealed the CMHC is ending its blanket ban on insuring mortgages for homes now that work is almost done.
After the report, there was applause in the council chamber and Mayor Mark Heyck commended several city staff members, including director of public works and engineering Chris Greencorn, for their efforts during lead up and the three years of construction.
"I just want to take a moment to express my sincere appreciation for the work they have undertaken," Heyck said.
Several residents of the neighbourhood also in the council chamber expressed appreciation.
The roads in Northland will be transferred to the city, meaning it will become responsible for maintenance.
Greencorn acknowledged the added responsibility will increase the public works department workload in the summer.
There are plans to pave the roads in the future. That cost was not part of the budget.
